Home Page of Mississauga Homes and Properties for SaleCondos for sale in MississaugaMississauga Power of Sales ListingsView Mississauga MLS Listings Properties For SaleMortgage Interest Rates in the Toronto, GTA and MississaugaToronto, GTA Mississauga Public Open HousesMarks Contact Information and Profile

You are here: 

Canadian economy expected to slow as consumer confidence falls: report
September 7, 2005
Read my 2007 Real Estate Market Predictions

ROMINA MAURINO

TORONTO (CP) - The Canadian economy is facing a slowdown over the next few months, the Conference Board of Canada said Tuesday, noting high gasoline prices helped push consumer confidence in August to its lowest level in over a year.

The private-sector group's index of consumer confidence survey for August found Canadians had a gloomier outlook on family finances, job market prospects and big-ticket spending.

"Any time you start seeing energy prices rising - you start seeing it more and more at the pump - that starts to affect people's confidence," said Pedro Antunes, director of economic forecasting at the Conference Board.

"If you go to fill up your car and you're paying $60, you've got a lot less for consuming anything else. So restaurants, big-ticket items, stuff like that will suffer."

In August, 54.4 per cent of respondents said the time was right for purchasing a home or car, a decline of six percentage points from July.

The index recorded a confidence decline of 5.6 points to 118.3, with decreases in all regions of the country.

It's the first time this year the index has seen a significant monthly decline, and the first time it's come down below 120 - which Antunes considers fairly low consumer confidence.

The July index was 123.9, with an average of 123 for most of this year and a range of between 120 and 125 for the last three years.

British Columbia experienced the sharpest decline, falling 7.8 index points. Confidence in Ontario declined by 6.9 points and the Prairies lost 5.5 points.

Don Drummond, chief economist at TD Financial Group, said he also expects the economy to show signs of slowing down for some time.

"The consumption has been roaring along, particularly in the first quarter this year - it was extraordinary strong," he said. "I don't think it will decline, but I think it's going to come down to a much more modest pace of growth."

The increase in gasoline pump prices, and the natural gas prices consumers will face this winter, will weaken consumption of other products, with or without an interest rate increase by the Bank of Canada Wednesday, he said.

Drummond predicts the pace of consumption growth will slow down in the last half of this year, with a small reprieve in the first half of 2006 before it weakens off again.

Economists expect the consumer confidence index to be worse for September, once the impact of hurricane Katrina and the gasoline price hikes that have taken place in its aftermath are taken into account.

The conference board survey was conducted in mid-August, before hurricane Katrina struck the U.S. Gulf region and helped push Canadian gasoline prices into the stratosphere.

"People see what happened in Louisiana, and all the people over there that the government was not able to take care of," said CIBC senior economist Benjamin Tal.

"This is a psychological thing that certainly affects consumer confidence. If you add to it the impact of energy and gasoline prices and the fact because of that also the Canadian dollar is rising - all of that is actually negative for the consumer in the short term," he said.

Tal said he expects a small upturn in the economy when the flooded city of New Orleans starts rebuilding in the next three to six months.

Another small boost would be if interest rates don't rise as much as expected, because 30 per cent to 35 per cent of the housing market is made up of people with variable-rate mortgages, which will be affected by higher short-term rates.

But even that, he warns, would only provide a "little lift."

The Bank of Canada is widely expected to raise its key overnight rates by a quarter point on Wednesday, the first hike by Canada's central bank since October 2004, but it's less clear whether further increases will follow this year.

The conference board survey, conducted between Aug. 11 and 16, is constructed from responses to four attitudinal questions posed to a random sample of Canadian households. The latest results are based on over 2,000 telephone interviews.

© The Canadian Press, 2005

June Press Release by RE/MAX

Homebuyers in the GTA up the ante; Sales in excess of $350,000 surge ahead in Q1, says RE/MAX

Mississauga, ON (June 6, 2005) -- Solid equity gains and low interest rates contributed to an upswing of close to 20 per cent in home sales over $350,000 in the Greater Toronto Area in the first quarter of 2005, according to RE/MAX Ontario-Atlantic Canada.

An independent analysis by RE/MAX of homes sold in the Greater Toronto Area during the first quarter of 2005 found that more than 4,100 unit sales occurred over the  $350,000 price point, up from just over 3,400 in the first three months of 2004.  Homes sold over $350,000 also represented a larger percentage of total sales at 27.1 per cent (one in every four), up from 21.9 per cent (one in every five) one year earlier.  At this rate, we expect that sales over $350,000 could account for one in every three homes sold in GTA by the end of the first quarter in 2006.

"Both first-time and move-up purchasers are driving today's real estate market in the $350,000 plus price category," says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada.  "We're seeing a growing number of first-time buyers in this segment of the market, typically dominated by those trading-up.  These buyers may have waited longer to jump into the market but when they do, they're making a more substantial purchase.  Existing homeowners, on the other hand, have seen an excellent return on investment in recent years and have no problem taking advantage of the upward momentum."

Leading in terms of sales priced between $350,000 - $499,999 are the city's peripheral areas, including N08 (Vaughan Maple, Kleinburg - 146 units), N11 (Markham, Unionville - 127 units), W19 (Mississauga, Hurontario, East Credit, Meadowvale Village, Streetsville - 113 units), W20 (Mississauga East Credit, Central Erin Mills, Meadowvale - 97 units) and N04 (Richmond Hill -82 units).  A good selection of both new and resale homes available in the bedroom communities have kept price appreciation at moderate levels.  Average prices in these areas range from a low of $395,994 in Mississauga's W20 district to $415,638 in Richmond Hill N04. 

"There's no question that purchasers are drawn to the city's outlying areas because of the bigger bang for the buck - but that's not the only reason," explains Polzler.  "For many young families, the suburbs offer the best of both worlds-newer housing stock with larger yards and an abundance of amenities at a fraction of the cost of a similar home in the city."

At the top end of the spectrum, steady demand continues to exist for properties priced over $500,000 in the Greater Toronto Area.  Sales activity during the first quarter of 2005 was highest in Toronto's C04 (Ledbury Park, Lytton Park, John Ross Robertson, Allenby and Cricket Club - 108 units), C02 (Annex, South Hill, Yorkville - 72 units), Richmond Hill's NO3 (68 units), Toronto's C12 (York Mills, Hoggs Hollow, Bridle Path, St. Andrews - 65 sales), and C10  (Lawrence Park, Wanless Park - 64 units).

Average prices in this area vary significantly, from a low of $793,161 in C10 to a high of $1,204,900 in C12.  Sales to list price ratios are also tighter, with C10 at 100.72 per cent and C04 at 99.42 per cent.  Lower inventory levels in the central core of the city are in larger part responsible for the higher sales to list price ratio.
 
"The fact that central core district dominated four of the top five markets in the GTA priced over $500,000 came as no surprise," says Polzler.  "Location continues to be the most coveted facet of real estate."

While affordable freehold housing stock is dwindling in Toronto proper, purchasers are increasingly drawn to the city's peripheral areas where detached, semi-detached, and townhome alternatives are priced at well under $250,000.

Toronto Real Estate Board Districts E16 (Oshawa - 371 units), W23 (Brampton - 317 units) and W24 (Brampton - 205 units) cornered the first-time buyer's market in Q1 2005.  Average price ranged from $170,463 in Oshawa to a high of $215,926 in Brampton's W23 district for a freehold property in most instances.  Affordable condominium apartments and townhomes in Mississauga's Square One area (W15 - 250 units) and Toronto's C01 (Harbourfront - 231 units) district saw strong momentum as well, with average prices hovering at $173,435 and $199,860 respectively.

Although home sales under $250,000 were off close to 18 per cent from one year earlier, average price was on the rise.  The same markets led the under $250,000 category last year and represented a total of 1,672 unit sales during Q1.  This year, only 1,374 homes were sold - suggesting that an increasing number of homes listed for sale have crossed the $250,000 threshold.

Sales of homes priced from $250,000 to $349,999 remain virtually on par, posting a nominal one per cent gain in the first quarter of 2005 compared to the same period one year ago.  Purchasers in this price category were most active in W23 (Brampton - 378 units), W20 (Mississauga - 250 units), N08 (Vaughan - 184 units), W19 (Mississauga - 183 units) and N11 (Markham - 181 units).

RE/MAX is Canada's leading real estate organization with over 14,700 sales associates in close to 600 independently-owned offices.  The RE/MAX franchise network, now in its 32nd year of consecutive growth, is a global real estate system operating in 55 countries.  More than 5,500 independently-owned offices engage over 107,000 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: www.remax.ca.

Previous press release by RE/MAX

Mississauga, ON. (April 26, 2005) ñ While residential housing values across the country have posted impressive increases over the past decade, unit sales have absolutely soared, according to a report released today by RE/MAX Ontario-Atlantic Canada and RE/MAX of Western Canada.

RE/MAX Decade in Review 1995 ñ 2005 highlights sales and price activity in 16 markets across the country. Prince Edward Island saw unit sales activity triple in the 10-year period while sales more than doubled in Ottawa, Toronto, St. Johnís, Calgary, Montreal, Victoria and Edmonton. Montreal and Calgary reported the greatest average price appreciation - in excess of 80 per cent or eight per cent annually -- while Halifax-Dartmouth, Saskatoon, Kelowna, and Edmonton saw housing values climb 70 per cent or more in the first quarter of 2005, compared to the same period one decade earlier.

"More Canadians bought into homeownership during the last 10 years than in any previous decade," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Lower borrowing costs and tight vacancy rates helped jumpstart the countryís real estate engine in the latter half of the 1990s. Consumer confidence and solid economic fundamentals kept the market on track. Despite an increase in mortgage rates from historic levels reported in 2003 and an abundance of affordable rental accommodations, Canadians continue to share the dream of homeownership. That appeal has yet to be duplicated by any other investment vehicle."

Home sales across the country rose to approximately 3.6 million units between 1995 to 2004, up 25 per cent over the 2.9 million reported sales in 1985 ñ 1994. Statistics Canada pinpoints homeownership levels at 65.2 per cent nationally in 2002 and rising. Only Quebec and British Columbia reported homeownership levels under the national average.

The highest number of residential sales occurred in Toronto at 18,074 units in the first quarter of 2005, compared to 7,464 units during the same period in 1995. Prince Edward Island led the charge in terms of percentage increase at 203.6 per cent (170 vs. 56), Ottawa at 165.6 per cent (2,699 vs. 1,015), Calgary at 143 (6,812 vs. 2,803), Toronto at 142.2 per cent, and St. Johnís at 139 per cent (447 vs. 187).

"Despite a year-to-date increase in the number of homes listed for sale, housing values are positioned to climb even further," says Elton Ash, Regional Vice President, RE/MAX of Western Canada. "Demand simply continues to outpace supply in hot pocket areas of major Canadian centres. In Vancouver, for example, demand is so heated that purchasers are including trump clauses in their offers to purchase that allow them to ante up on any higher offers that may be presented. Thatís a first for this industry."

Average price in Canadaís most expensive market hovers at $395,390 so far this year, up a nominal 19 per cent over the $332,003 reported in the first quarter of 1995. Although housing values in Vancouver experienced some downward pressure in the mid-to-late 1990s, price appreciation since 2001 has demonstrated steady upward momentum.

The highest percentage increase in average price occurred in Montreal where housing values rose 85.9 per cent from close to $105,000 in the first quarter of 1995 to nearly $195,000 year-to-date 2005. Three of the top four remaining markets were located in Western Canada, with Calgary ranking second at 81.7 per cent, Saskatoon securing fourth at 76.2 per cent, and Kelowna at 76.1 per cent rounding out the top five. Halifax-Dartmouth placed third with a 77.3 per cent increase in average price over the 10-year period. Nationally, average price has increased 53.7 per cent, rising from $152,855 in the first quarter of 1995 to close to $235,000 year-to-date (January- February) 2005.

"Existing homeowners in the major centres have seen equity gains that have far exceeded their expectations, especially in the last five years," says Polzler. "Yet, the rate of appreciation is healthy. We have not seen the annual double-digit increases of 20 per cent or more that would typically precipitate a bubble."

The report also identified a number of trends developing across the country:

RE/MAX is Canadaís lead ing real estate organization with over 14,700 sales associates in close to 600 independently-owned offices. The RE/MAX franchise network, now in its 31st year of consecutive growth, is a global real estate system operating in 54 countries. More than 5,400 independently-owned offices engage over 102,000 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: www.remax.ca.

RE/MAX Ontario has issued the following press release in mid January regarding 2004 stats and predictions for our local Mississauga and GTA Real Estate market in 2005

April 7, 2005 update from RE/MAX

Million dollar home sales continue to climb in the GTA, posting significant year-to-date gains, says RE/MAX

Mississauga, Ont. (April 7, 2005) ñ Sales of upper-end homes in the Greater Toronto Area continue to spiral upward, climbing 33 per cent in the first quarter of 2005 compared to the same period one year ago, according to RE/MAX Ontario-Atlantic Canada.

Two hundred and ninety-six homes have sold in excess of $1 million on the Toronto Real Estate Board so far this year, surpassing the annual figures reported in 1996 (113), 1997 (175), 1998 (211), and 1999 (289). Luxury sales over $1.5 million saw the greatest appreciation, with units sold up 36 per cent over one year ago (102 vs. 75). Upscale homes sold between $1 million to $1.5 million were up close to 32 per cent year-to-date (194 vs. 147).

"The strong momentum in the upper end shows no sign of abating," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Record housing sales continue to characterize the luxury home market. Although solid economic fundamentals are in large part responsible for the upswing, thereís no question Canadians continue to look to diversify their portfolios by trading in paper wealth for material possessions."

In spite of a 33 per cent increase in sales activity, average price posted a modest gain of two per cent to $1,566,006 in the first three months of the year, up from $1,533,653 one year ago. A growing number of neighbourhoods are reporting sales activity over the $1 million mark. Leading the charge in terms of up and coming areas is Willowdale/Newtonbrook (10) where infill properties are boosting both sales and housing values. Even Leaside (3) and the Beaches (3) are now reporting sales in excess of $1 million.

Luxury home sales comprised 1.6 per cent of all homes sold in the Greater Toronto Area in the first quarter, up from 1.1 per cent during the same period in 2004. The greatest number of sales over $1 million took place in the coveted Hoggís Hollow, Bridle Path, St. Andrews, and York Mills Gardens area (C12) where 43 home changed hands so far this year. The area also had the highest number of listings priced over $1 million at close to 100. A surge in sales activity has brought the Ledbury Park, Lytton Park, Cricket Club, North Toronto and Allenby (C04) communities into the spotlight with 39 units sold over $1 million in the first quarter of this year. There are currently 55 homes listed for sale in the C04 district priced over $1 million.

Demand is also strong in the prestigious Rosedale (C09) area, with 33 sales occurring year-to-date. With less than 50 homes on the market, tight inventory levels in Rosedale continue to place enormous pressure on housing stock ñ as a result, one in every three homes listed for sale in Rosedale sold at or above list price during the first three months of the year.

Supply is also an issue in the cityís west end (W08), where 41 per cent of homes are selling at or above list price. Seven of the 17 homes sold in the Kingsway, Princess Ann Manor/Gardens, Islington Village, and Thorncrest Village (W08) neighbourhoods experienced this phenomenon in the first quarter of 2005.

The most expensive sale so far this year occurred in Oakville, at $4.75 million, while the highest priced listing on MLS is located in the prestigious Bridle Path area at $15 million. Seven homes have sold for more than $3 million so far this year, up from one in 2004.

Toronto has recorded 13 sales of condominiums and townhomes priced over $1 million year-to-date, compared to eight during the same period last yearóan increase of 62.5 per cent. The most expensive condominium sold in 2005 was a $2.350 million unit located in Annex/South Hill (C02). Currently, 70 luxury condominiums priced over $1 million are listed for sale in Toronto through MLS. Nearly 90 per cent of those are located in the central core. The most expensive condominium on the market is an apartment-style suite located in the prestigious Windsor Arms Hotel. The price? $6.998 million.

Along with the number of million-dollar home sales, the pool of Canadian millionaires continues to swell annually. In 2005, the millionaire market is expected to reach 600,000 households, representing $1.65 trillion in assets.

"The upper-end of the cityís housing market is expected to remain resilient," notes Polzler. "Playing an increasing role are inheritances, the total value of which is expected to reach $550 billion over the next 10 years. The boom generation, in particular, is funneling much of this new-found wealth into real estate, as increases in home equity over the past several years have contributed to considerable growth in the net worth of Canadian homeowners."

RE/MAX is Canadaís leading real estate organization with over 13,800 sales associates in close to 600 independently-owned offices. The RE/MAX franchise network, now in its 31st year of consecutive growth, is a global real estate system operating in 53 countries. More than 5,200 independently-owned offices engage over 100,000 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: www.remax.ca.

 

Detached homes in Annex, South Hill post greatest price appreciation in 2004, says RE/MAX

Published at Mississauga, Ontario (January 19, 2005) -- Single-detached homes in the Greater Toronto Area (GTA) provided the best return on investment in 2004, with 33.7 per cent of the close to 90 Toronto Real Estate Board (TREB) districts examined posting average price gains in excess of 10 per cent, according to RE/MAX Ontario-Atlantic Canada. 

Leading the GTA in terms of average price appreciation in the single-detached category is the Annex, South Hill (C02) at 23.9 per cent.  The top ten neighbourhoods, as identified by RE/MAX through TREB statistics, are as follows:  The Annex, South Hill (C02) with 23.9 per cent; Scugog, Port Perry (E21) with 17.3 per cent; Lansing, Willowdale (C14) with 16.9 per cent; Riverdale, Leslieville (E01) with 16.8 per cent; Leaside (C11) with 15.3 per cent; Uxbridge, Stouffville (N16) with 15.3 per cent; Swansea, Roncesvalles (W01) with 15 per cent; Lawrence Park (C10) with 14.7 per cent; Bloor West Village, High Park (W02) with 13 per cent; and Rosedale, Summerhill (C09) with 12.6 per cent.  See district boundaries

"Location is clearly the number one factor influencing price appreciation in the Greater Toronto Area," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.  "It comes as no surprise that the vast majority of top performers are older, established communities located in close proximity to the downtown core. There has been a significant upswing in urban demand and despite an increase in inventory levels in seven of the Top 10 neighbourhoods, a shortage of desirable properties still exists.  Supply issues are placing upward pressure on housing values."

That point is best underscored in the central core, where single-detached homes in seven of the 14 neighbourhoods experienced price appreciation ranging from 10 to 23.9 per cent, explains Polzler. The sales to listings ratio climbed to 58.9 per cent in 2004, up from 53.3 per cent one year earlier.

Average prices for a single-detached home varied in the top ten, with Rosedale Summerhill topping the list as the most expensive neighbourhood at $1,366,248 in 2004.  Lawrence Park placed second with an average price of $849,773 while the Annex, South Hill hovered at $772,215.  Coming in at fourth spot was Leaside at $659,195 while Lansing, Willowdale placed fifth with an average price of $578,554.  In the west end of the city, Swansea, Roncesvalles and Bloor West Village and High Park, claimed sixth and seventh place at $538,309 and $459,973 respectively.  Riverdale, Leslieville offered a more affordable option in town with an average price of $366,949 while outskirt communities such as Uxbridge, Stouffville and Scugog, Port Perry were least expensive at $347,739 and $285,480 respectively.  Overall average prices.

"While some suburbanites have chosen to move back to the core, a growing number of first-time buyers are looking to move to more affordable housing in Toronto's peripheral areas," says Polzler.  "Urban sprawl has crossed boundaries east, west and north of the city but expanding GO train and bus routes have made the downtown core more accessible than ever before."

Condominium apartments and town homes were also ranked by price appreciation in the Greater Toronto Area. The top performing community in 2004 was Halton Hills, encompassing Acton and Georgetown (W27), which experienced a 13.1 per cent increase in average price.  Rosedale, Summerhill (C09) ranked second with a 12 per cent rise in condominium values, which brought average price to $435,030.  Third place went to Ajax (E14) where condominium town homes and apartments are in strong demand and limited supply.  Price increased 11.6 percent to an average of $185,558 in 2004.  Ranking fourth is the Annex, South Hill (C02), which has climbed 10.7 per cent to $483,350.  Average price has jumped 10 per cent to $121,029 in Oshawa (E16) for fifth place. With an increase of nine per cent and an average price of $300,695, Mimico, New Toronto (W06) claimed sixth spot.  Oakville (W21) held seventh place with an 8.9 per cent increase, bringing average price to $227,913. Back eastward to Whitby (E15) for an eighth place finish.  Average price rose 7.8 per cent to $183,497.  East Mississauga (W14) experienced a 7.6 per cent increase in average price to $183,704 to claim ninth position.  Vaughan (N08) rounded out the top 10 with a 7.3 per cent increase in average price to $258,532.

Of the close to 75 TREB districts reporting condominium apartment and town home sales, the vast majority experienced moderate price appreciation.  Only five areas posted increases in excess of 10 per cent. 

RE/MAX is Canada's leading real estate organization with over 13,800 sales associates in close to 600 independently-owned offices.  The RE/MAX franchise network, now in its 31st year of consecutive growth, is a global real estate system operating in 52 countries.  More than 5,200 independently-owned offices engage close to 96,000 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: www.remax.ca.

So, if you are thinking of selling and buying a homes this year, should you buy or sell first?  I've had many clients purchase before they sell.  I just want you to have all the information so you can make the best decision for yourself and your family.  You may read more about buying or selling first here

Read about what happened in real estate last month.

Read real estate market predicitons from a US perspective

I wish you much success, good health and happiness in 2005 and always! 

If you would like to discuss issues like this or other questions you may have, please email me at anytime .

Mark

 

Mississauga MLS Real Estate Properties & MLS.CA Homes for Sale  | All Pages including Mississauga Real Estate Blog all maintained by info@mississauga4sale.com Copyright © A. Mark Argentino, P.Eng., Broker, RE/MAX Realty Specialists Inc., Brokerage, Mississauga, Ontario, Canada L5M 7A1 (905) 828-3434  First created - Tuesday, July 16th, 1996 at 3:48:41 PM - Last Update of this website: Monday, January 1, 2024 9:34 AM
At this Mississauga, (Erin Mills, Churchill Meadows, Sawmill Valley, Credit Mills and / or Meadowvale ) Ontario, Canada Real Estate Homes and Property Internet web site you will find relevant information to help you and your family.


REMAX Mississauga Real Estate NewsletterReal Estate Market Watch Newsletter

Why Subscribe?  You will receive valuable Real Estate information on a monthly basis - such as: where to find the 'best' mortgage interest rates, Power of Sale Properties and graphs of current house price trends.  Plus, you will pick up ideas, suggestions and excellent real estate advice when you sell or buy your next home. Read Past Newsletters before you decide 
Privacy-Policy
Your e-mail: