Real Estate Information

Growing debt threatens economic stability: BOC

With household debt-to-income ratios in Canada at historical highs, the Bank of Canada is warning both borrowers and financial institutions to practice caution, particularly when it comes to mortgage lending.

"Financial institutions need to carefully consider the aggregate risk to their entire portfolio of household exposures when evaluating even an insured mortgage, since a household defaulting on an insured mortgage would likely be unable to meet its other debt obligations," the central bank's financial system review said.

On the borrower side, the bank stressed the need for households to "assess their ability to service these debt obligations over their entire maturity, taking into account likely changes in both income and interest rates." The warnings can be seen as a response to the current views that Canada could be heading toward a housing bubble.

Some good news in the report came on the topic of liquidity, with the Bank of Canada saying Canada's major banks have increased their stock of liquid assets and reliance on stable funding sources, "bolstering" their ability to provide credit during periods of stress. The report also said market-based funding is improving and that conditions in the international financial system have improved considerably since the last financial system review in June.

For more information on Best Mortgage Rates, please visit: www.GetBestMortgage.com

Thinkg of Buying or Selling your home or investing in real estate in Mississauga, Brampton and region of peel, please visit www.AceTeamRealty.com or call me at 416-618-9753.

Manoj Arora, Broker or Record

Ace Team Realty Inc., Brokerage, Mississauga

Greater Toronto Area Real Estate Home Sales Remain Strong in November

December 3, 2009 -- Greater Toronto REALTORS® reported 7,446 sales in November – slightly more than double the November 2008 result when GTA home sales had dipped markedly due to the economic downturn. Year-to-date sales were up 14 per cent compared to the first 11 months of 2008.

“This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006,” said Toronto Real Estate Board President Tom Lebour. “Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.”

The average price for November transactions was up 14 per cent year-over-year to $418,460. The average price year-to-date was up four per cent to $394,464.

“Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “As we move into the spring, growth rates will move to more sustainable levels.” have been high relative to listings,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year.”

Median Price
In November, the median price was $353,800, from the $312,250 recorded during November of 2008.

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In October 2009, Greater Toronto REALTORS® reported 8,476 sales, up 64 per cent from October 2008. The average price for October transactions was $423,559 – up by 20 per cent compared to the same month last year.

"Strong sales growth has occurred across many property classes – from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars," said TREB President Tom Lebour. “The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year.”

Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008. Average price, at $392,264 was up by almost three per cent. "After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings," according to Jason Mercer, TREB's Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year.”

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In the first two weeks of October, Greater Toronto REALTORS® reported 3,631 sales – up 34 per cent compared to the first two weeks of October 2008. The average price for these transactions was up 17 per cent year-over year to $414,479. 

In September 2009, Greater Toronto REALTORS® reported 8,196 sales, up 28 per cent from September 2008. The average price for September transactions was $406,877 – up by 10 per cent compared to the same month last year.

"We have experienced an increasing rate of existing home price growth in the GTA as sales have continued to outpace 2008 results," said TREB President Tom Lebour. "Consumers have remained confident in ownership housing as a long-term investment."

Year-to-date sales, at 66,437 were up 4.5 per cent compared to the first nine months of 2008. Average price, at $388,417 was up by almost 1.5 per cent. "Existing home sales will finish strong this year, pushing through the 80,000 mark and moving in line with some of the best years on record under the current TREB market area," according to Jason Mercer, TREB's Senior Manager of Market Analysis.

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C'on Home Sellers, what are you waiting for, Mississauga Real Estate Market is so Hot. The dramatical turn seen in the last few months from a buyers to a sellers market is continuing in Mississauga resale home sales.

Look at the August 09 figures, the sales are up from 5% to 20% approximately as compared to August 08 in different parts of Mississauga. But at the same time not many home owners are putting their home for sale. The new listings dropped by about 25% and more interestingly the total active listings almost dropped by 50% in August 09 in comparison to August 08. The home prices have also gone up in the range of 1% to 6% over the same period last year. This dropped inventory level has resulted in multiple offer situations and rightly priced properties are gone in just a week's time.

So let's look at this scenario, there are not many properties out there and buyer's can't find their dream home without getting into the multiple offers. So if you have been thinking of selling your home, why are you holding back, take advantage of this upswing market conditions. Want to know what's your home worth, just go to www.MyGTAHomeValue.com, input your home details and you would receive your neighbourhood activity.

And if you are a home buyer, the market is still not bad. The interest rates are so low, so why wait. Buy it now before the interest rates go up and the prices go up. Need help in finding the right property, just go to www.FindMyGTAHome.com, input what you are looking for and everyday you will receive email notification of all the new properties which come on the market meeting your requirements.

For more information on buying or selling a home in Mississauga please contact Manoj Arora at 416-618-9753 or email manojarora@rogers.com.

Strong Real Estate Sales Increases Continue in August in Mississauga, Brampton and Greater Toronto Area

In August 2009, Greater Toronto REALTORS® reported 8,035 sales, up 27% per cent from August 2008. The average price for August transactions was $387,921 – up by six per cent compared to the same month last year.

"The increase in demand for existing homes has been widespread across different housing types and price ranges," said TREB President Tom Lebour. "This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a lifestyle change."

Year-to-date sales, at 58,421 were up two per cent compared to the first eight months of 2008. Average price, at $385,978 was up by less than one-half of one per cent. "We have heard more positive economic news lately. The improved housing market has played a key role,” explained Jason Mercer, TREB's Senior Manager of Market Analysis. "Home sales have helped other sectors of the economy through home buyers’ spending on things like financial and legal services, moving, renovations and home furnishings."

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Over the past month we have seen a real charge in the Brampton Real Estate market. Looking back at last year all we heard was negative towards the market. This has changed dramatically even turning from a buyers to a sellers market. Why has this happened as quickly as it has?

The first reason is that interest rates are at an all time low giving buyers an opportunity to upgrade or even purchasing their first home. Secondly, the conception that home prices are much lower than a year ago and that the market is on the rise so people are quickly trying to buy and lastly many buyers have sat and waited for the market to bottom out and have begun buying.

What does all this mean? We have seen the market over the past couple of months shift from a buyers to a sellers market. Looking back at July of 2008 we did see sales, we saw decent prices but we also saw high inventory. This has changed this past month.

In July of 2009 we saw sales rise between 10% and 22% in the different neighbourhoods. This is a huge increase over last year. Where people felt that prices were low we saw an increase of close to a percentage point in price of homes in Brampton.

Some of the shocking news that leads me to believe that this hot market will remain is that we have seen the inventory of homes in Brampton decrease by as much as 40% over this period last year. A low inventory creates a very strong sellers market. We, for the first time in years are now witnessing multiple offers and even bidding wars in some cases. We have seen the amount of time a home stays on the market has dropped by as much as 15% in Brampton.

What this means for sellers is that if you are considering selling your property get your home on the market now. There is a wave that you may ride something that we have not seen since 2007. This is not all bad news for buyers with the interest rates as low as they are you really are paying less for that dream home you are looking to find. The most important thing for buyers is make sure that you are working with a professional who knows and understands the market you are looking for. The days of sitting by your computer and surfing for homes are gone. You need daily updates of listings for the homes you want and the only way that you are able to receive this is from a Real Estate professional that gets this information hourly.

For more information on buying or selling a home in Brampton please contact Manoj Arora at 416-618-9753 or email manojarora@rogers.com.

TORONTO, August 18, 2009 - In the first two weeks of August, Greater Toronto REALTORS® reported 3,832 sales – up 27 per cent compared to the first two weeks of August 2008. The average price for these transactions was up three per cent year-over-year to $383,796.

"The results for the first half of August indicate that many households in the GTA remain confident in their ability to purchase and pay for a home over the long term," said TREB President Tom Lebour.

Year-to-date sales, at 54,303 are up slightly compared to 54,138 in 2008. Average price, at $385,603 is down by less than one half of one per cent. "Strong resale housing demand will contribute to broader economic recovery as each transaction results in substantial spin-off benefits to other sectors of the economy," explained Jason Mercer, TREB's Senior Manager of Market Analysis.

TORONTO, August 6, 2009 - In July 2009, Greater Toronto REALTORS® reported a record 9,967 sales, up 28 per cent from July 2008. The average price for July transactions was $395,414 – up by six per cent compared to the same month last year. 

"Households confident in their positioning within the current economic environment have taken advantage of housing affordability in the GTA," said TREB President Tom Lebour. "The real estate sector has been one of the sectors making a positive contribution to economic growth in the GTA, not to mention Ontario and Canada more broadly."

Year-to-date sales, at 50,632 are down 1.2 per cent compared to the first seven months of 2008. Average price, at $385,808 is down by less than one-half of one per cent. "The steep drop-off in sales experienced at the beginning of the year has all but dissipated," explained Jason Mercer, TREB's Senior Manager of Market Analysis. "With five months left to go in the year, it is probable that total existing home sales in 2009 will be at or above last year’s level."

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