2013 Canadian Housing Market Outlook – By Remax Ontario

Mississauga, ON – Canadian real estate markets demonstrated remarkable resilience in 2012— with home sales up or on par in 65 per cent of major centers—despite considerable headwinds in terms of tighter financing and economic uncertainty abroad. The trend is expected to continue, with home-buying activity propped-up by low interest rates and an improved economic picture in 2013.

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Strong Average Price Growth in September

As per latest report from Toronto Real Estate Board (TREB), released this month, Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5 per cent compared to last year.

The number of transactions was down by 21 per cent in comparison to September 2011. However, it is important to note that there were two fewer working days in September 2012 compared to September 2011. The majority of transactions are entered on working days. On a per working day basis, sales were down by 12.5 per cent year-over-year.

“While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing,” said Toronto Real Estate Board (TREB) President Ann Hannah.

September average selling prices were up compared to last year for all major home types. Price growth was strongest in the City of Toronto, including for condominium apartments with eight per cent year-over-year growth. All benchmark home types included in the MLS® Home Price Index (MLS® HPI) experienced year-over-year price increases, with substantially stronger increases for low-rise home types.

“Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes,” said TREB’s Senior Manager of Market Analysis, Jason Mercer.

Download this complete report @ http://www.torontorealestateboard.com/market_news/market_watch/2012/mw1209.pdf

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Average Home Selling Price Up by 7.1%

Greater Toronto REALTORS® reported 7,570 sales in July 2012, representing a decline of 1.5 per cent compared to 7,683 sales reported in July 2011. The decline was most pronounced in the condominium apartment segment in the City of Toronto. Total sales in the rest of the Greater Toronto Area (GTA) were up compared to the same period last year.

“Very strong annual sales growth in the first half of 2012 and an earlier peak in sales this spring compared to 2011 help explain more moderate sales this summer. New mortgage lending guidelines and the additional upfront cost of the City of Toronto land transfer tax also prompted some households to put their buying decision on hold,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price in July 2012 was $476,947 – up by four per cent compared to July 2011. The MLS® Home Price Composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 7.1 per cent year-over-year.

“The GTA housing market became better-supplied in recent months. Buyers benefitted from more choice in the market place, resulting in less upward pressure on the average home price in July,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The mix of homes sold in July 2012 versus July 2011 also appears to have changed, further influencing the average selling price. This is evidenced by the different annual rates of growth between the overall average price and the MLS HPI®,” continued Mercer.

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How will New Mortgage Rules Effect GTA Home Sales?

By now, most of you must be aware of new mortgage rules in effect starting July 9th 2012. If you are not aware of these rules…..please review my June blog on the subject.

In Nutshell, how these rules will effect you….will be affordability of what you can purchase. For example someone who could previously afford $500,000 mortgage, now due to new rules in effect, their affordability have dropped down to Approx. $400,000. Just to keep it simple, all these rules combined make the affordability drop by 15% – 20%.

This is expected to force Bank of Canada to maintain existing low interest rates for a while. Which may encourage all major retail banks to reduce their lending rates to end consumer to reduce this gap between affordability and home prices. We can already start seeing this happening as lowest 5 Years & 3 Years Fixed rates now available currently are as low as 2.89% & 2.69% respectively. Such incentives will reduce that affordability gap by 10% – 15% instead.

As summer months are historically proven to be more active for real estate business, these rules may effect the overall activity in the market, which we are already seeing happening but housing still being a basic necessity, will keep the momentum going…..even though @ slower pace compared to same time last year.

Buyers may need to weight between their needs and wants and settle for less whereas Sellers may not enjoy multiple offer situations on their properties any more. In nutshell both have to tone down their expectation levels in order to accomplish the final result.

For Qualified Buyers, who were planning to buy lower then their qualifying limits….this will be exceptional opportunity to secure something of their choice at a reasonable price with lowest mortgage rates.

Overall, these rules are for betterment for our housing market. Precaution is better then cure!

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Effective July 9th 2012 CMHC to reduce the amortization to 25Yrs from 30Yrs

Finance Minister Jim Flaherty outlined new rules aimed at reining in a hot housing market to make it harder for people with limited means to buy homes or borrow on ones they already have.
Flaherty outlined a series of changes to the rules that govern the Canada Mortgage and Housing Corporation (CMHC), the crown corporation that effectively oversees the housing market by insuring the vast majority of Canadian mortgages.
The most important change are as below respectively:

1. Maximum amortization period to 25 years, down from the current 30 years. Ottawa has now moved three times to rein in the maximum mortgage term, since the CMHC briefly started insuring mortgages with 40-year terms in 2006. The limit was brought down to 35 years, then 30 and now the more traditional 25, which was always there before 2008.

2. Flaherty also moved to cap the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent in order to get CMHC insurance. Those two ratios are technical limits on how much debt a borrower is allowed to take on as a percentage of their overall income. (Currently, GDS does not apply to qualified borrowers with credit scores of 680+). This move, too, is aimed at making sure a borrower can’t bite off more than he or she can chew.

3. End CMHC Insurance for homes which cost more than $1 million i.e. people looking to buy luxurious homes with high ratio mortgage is no more an option available after July 9th 2012. In addition to not being able to access CMHC insurance, Flaherty said the new rule will be that a buyer of a home priced higher than $1 million must have 20 per cent or at least $200,000 down. This in my opinion is a very good and important move to save our housing market…..as this type of housing is only a luxury and shall only be purchased by people who can actually afford it i.e. high ratio mortgages shouldn’t have been applied here. So, CMHC limited resources shouldn’t be wasted on this sector rather help the entry level products meant for 1st time home buyers.

4. The government has lowered the total amount that Canadians can withdraw when refinancing their homes to 80 per cent of the home’s value, from 85 per cent.
“This will promote saving through home ownership and encourage homeowners to prudently manage borrowings against their homes,” Flaherty said.
Flaherty said the changes are aimed at promoting stability in the financial system as a whole. The housing market is a barometer for that system.

“We are continually monitoring the housing market,” he said.

To summarize…..Lesser people will qualify for Mortgages starting July 9th 2012 i.e. you will need better credit scores and lower debts to qualify plus 10% – 15% more income to qualify for the same amounts which you will qualify before the deadline approaching only in 18 days!!!
Don’t Let Your Dreams Fall Apart. Let us help you Find Your Home Today @

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REMAX Dominates the Real Trends Canadian Brokerage Rankings Report

has released its official annual lists of the largest Canadian 250 Real Estate Brokerages, ranked by transaction ends and sales volume.
Once again an independent, unbiased third party has recognized REMAX as the commanding presence in Canadian Real Estate. REMAX claimed an additional 24 slots for a total of 161 of 250 spots with our closest competitor, Royal LePage, only having 23 brokerages on the list.

Here are the total number of brokerages from each franchise that made the cut for the REAL Trends Canadian 250:
RE/MAX: 161
• Royal LePage: 23
• Coldwell Banker: 21
• Keller Williams: 12
• Century 21: 6
• Exit: 6
• Prudential: 5
• Sutton: 5

Some of the highlights in this year’s report are:
RE/MAX owned 64% of all listings (161 of the 250)
• 59% of the total transactions on the report came from RE/MAX
• RE/MAX Agents are the Most Productive. RE/MAX agents average 15.8 transactions per agent
• RE/MAX secured 65 of the 121 brokerages in Ontario and Atlantic Canada

RE/MAX is also socially responsible brand supporting our community from last many decades. This year they completed 20 years of supporting Children Miracle Network raising over $44 Million for children’s hospitals across Canada till date. Remax Ontario Office is located in Mississauga. One of the best cities to live in Canada. With hoards of employment opportunities, educational institutions, shopping centers, recreation opportunities and proximity to Lake Ontario making Mississauga a great city to live in. Mississauga has a great number of residential options starting from flats to condos, from stand alone bungalows to penthouses; Mississauga has something on offer for everyone. No matter whether you are relocating to the city or are looking for a new residence, condos in Mississauga serve as an ideal place for a comfortable and luxurious living.

The condominium industry in Mississauga has been booming. With the industry experiencing a lot of demand; many new towers have gone under construction to satisfy demand among buyers. One of the primary reasons for the growth of this industry is the city’s proximity to Toronto. Since Toronto has sky high property prices, many people choose to stay in Mississauga and drive to Toronto for work. Mississauga was originally developed as a suburb for Toronto, but considering its close proximity to the city which has aided to its rapid growth; it is being counted as one of the fastest growing cities in the world.

Our office i.e. Remax Realty One, Mississauga is conveniently located in central Mississauga, making us very conveniently accessible to anyone looking to buying and selling real estate in Mississauga and surrounding areas. Remax Realty One is professionally managed brokerage with more then 120 agents where all of us believe in only delivering best results and exceptional service for our clients. We have been awarded consumer choice award for exceptional customer support and service continuously for last 2 years. We have ourselves raised our benchmarks which are tough to match by any other brokerages in the city.

Choose for your next real estate transaction to get most professional representation as well as to support your community!

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New Condos Mississauga – Creating A Range Of Life Style Choice For You

New condos Mississauga is no longer an alien term. In the recent years….skyline of Mississauga have changed considerably and within next decade, will transform considerably with so many new condo projects in Mississauga are expected to be completed within next few years. Mississauga have always attracted people over other neighboring cities of Toronto due to multiple reasons, which includes affordability, healthy living environment, working opportunities, low crime rate and the list goes on and on. However before you jump into purchasing a New Condo in Mississauga, there are few details that you will be required to take into consideration.

Understanding your Reasons for purchase of a New Condo in Mississauga

Every body have their own reasons, like some people are buying New condos for investments, some are buying for themselves some are buying for their family etc. Also the closing date available for condo occupancy will help you decide on, which projects to shortlist. .

Based on your reasons to purchase & closing date requirements for a pre construction condo in Mississauga, various projects are available like:
Parkside Village, Pinnacle Uptown, Pinnacle Grand Park, Miracle Condos, Mirage Condos, Stone Brook Condominiums and the list goes on and on, which all will offer various features appealing different set of condo buyers.

Amenities & Location will decide on expected occupants of any specific Pre Construction Condo Project in Mississauga.

In Mississauga, we have various communities for New Condos. Whether you are looking for New Condos in Square One area, Erin Mills Condos or Lakeshore Condos…..Each will attract different set of Buyers. Within these areas, there are various new condo projects in mississauga which have different attractive amenities and features. Each New Condo Project will have something to appeal different set of buyers. For example, If you are looking for a quiet, calm and natural setting around you, where you can unwind your troubled as well as exhausted mind then there are few New condos Mississauga, which serve this requirement. There are other New Condo projects, which have features and amenities, much more appealing to younger generation. Whereas there are other New Condo projects, which give you very simple environment, more fit for families. Also with growing demand from baby boomers, there are New Condos, which fit the requirements of Matured Seniors.

Every project fits different profile of Buyer for New Condos in Mississauga. We have came across cases, where Buyers profile and requirements were not at all fit for a pre construction projects, even though Buyers were thinking otherwise. Still as they wanted only Brand New Condos in Mississauga, we had to make the select from ready to move in new condos in Mississauga.

As VIP Brokers for all major New Condo Projects in Mississauga as well as being licensed Realtors, we are able to get our clients maximum choice and help them find a perfect Condo fit to their requirements. We don’t have to focus on selling you a Condo unit which is not meeting your requirements…..as we have maximum options available to choose for our VIP Condo Buyers, we can use all are resources and networks to help you get the Condo of your Dreams. Whether you are looking for Square One Condos, Lakefront Condos on Lakeshore, Condos near Toronto or Condos in Erin Mills area…..we are your answer to all your requirements of New Condos in Mississauga!!!

Click On the Links below to See the Pre Construction & Under Construction Condo Projects Currently On Sale:
Builder Condos
Click on the Link below to see the New Condos ready to move in Units Currently available for Sale:
New Condos For Sale in Mississauga

Click on the link below to Find Top 10 Reasons to Invest in Mississauga

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Home Prices in USA will effect Housing Market in Canada

RE/MAX CEO Margaret Kelly appeared on CNBC’s Street Signs on March 14, 2012 to discuss the RE/MAX National Housing Report, which found that for the first time in 18 months, home prices rose year-over-year in February. This is first time such high positive numbers are seen across the border. Question is will this effect us in Canada?

Canadian Economy currently have high unemployment rate, which was majorly due to economy downturn which started back in 2008 in USA and hitted majority of Canadian exporters. We supply across the border along with many other things, lots of building materials like base metals, wood, asphalt shingles, carpets, flooring and the list goes on and on. With improvement in consumer confidence across the border, builders will get back in action which will reopen this export avenue, which was getting effected by this depression. This will further lead to two things in Canada:
1. Increase in Employment Rate
2. Increase in GDP

Once both above happen….it will lead to increase in Bank of Canada’s key lending rates to Retail banks i.e. leading to increase in lending rates which current consumer is enjoying. This is still not expected to bring the real estate market down, as when employment rates goes up…..real estate is not expected to comes down in any economy. Where it will effect will be what you can afford to buy i.e. If today if your bank is approving you with $500,000 mortgage, the situation may not be the same tomorrow….you may qualify for lesser amounts, specially for high ratio mortgages. All leading to compromise somewhere in what you want to buy.

NOW is the time….if you were at all thinking of buying this year….you shall re-evaluate your situation and look into the possiblity of securing your dream home faster.

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GTA Real Estate Market is up by 16%

Greater Toronto Area Realtors reported 7,032 sales in February 2012 – up 16 per cent compared to February 2011. The average selling price in the GTA market area was $502,508 in February – up 11 per cent compared to February 2011. New listings were also up over the same period, but by a lesser 11 per cent to 12,684. The Composite MLS® Home Price Index for TREB, which provides a less volatile measure of price growth compared to the average price, was up by 7.3 per cent compared February 2011.

“With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price. Price growth will continue to be very strong until the market becomes better supplied,” said Toronto Real Estate Board President Richard Silver. “It is important to note that both buyers and sellers are aware of current market conditions. This is evidenced by the fact that homes sold, on average, for 99 per cent of the asking price in February,” continued Silver.

“If tight market conditions continue to result in higher than expected price growth as we move into the spring, expectations for 2012 as a whole will have to be revised upwards,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “While price growth remains strong, the average selling price remains affordable from a mortgage lending perspective for a household earning the average income in the GTA.” Continued Mercer.

“Fears of a bubble are over inflated, unless there is the unlikely situation where jobless rates suddenly soar along with interest rates”, said Scotiabank Senior Economist Adrienne Warren. As mentioned in last report….Ottawa may now consider increasing down payment requirements for home purchasers and reducing amortization from 30 to 25 years to keep a watch on the industry.

Canada’s housing market remains “in fundamentally better shape” than most other international markets where economic and political uncertainty, high unemployment and worried consumers have deflated demand and prices.

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The Indispensability of a Mississauga Real Estate Agent

Purchasing a perfect home or a Condo, involves a lot of hard work and is one of the Major decisions of your life. Buying Vs Renting a property is a good way to highlight the kind of status you hold. However, procuring a house can sometimes involve a complex procedure. You need prior information and apposite preparation to enter into the major transaction such as deal home purchasing. In case you want to make Mississauga your home, it would be extremely wise to take the help of a Mississauga real estate agent i.e. someone who does majority of his/her practice in Mississauga real estate, other then being a full time and experience professional. He will surely enlist all the suitable property types well matching your residential requirements, as he will understand the dynamics of Mississauga better then a real estate agent coming from another city.

How can Mississauga real estate agent Make Things Easy for You?

• Buying a home at any part of Mississauga is not the right thing to do. Being a large city, we have combination of preferred and no preferred areas within a neighborhood. Here, you need to concentrate on the areas which are highly suitable for residential reasons and have a history of reasonable appreciation. Your Mississauga real estate agent has a good role to play here, and he would best guide you in matters of choosing an ideal Mississauga district based on your needs and budget.
• If you have young children, you may want to buy a house in proximity of the school which has good reputation, so that your child can get a reputed education facility. Like most of the cities in Canada, most of the public schools in Mississauga have limited boundaries i.e. they cater to homes which fall within school boundaries. Your Mississauga real estate agent can easily show you homes, which are within your school boundary requirements.
• In case you want to find a Mississauga homes online, a benchmark user friendly website like http://www.SearchMississaugaHomes.ca can be a real help, if you already know, which specific neighborhood you want to concentrate on. In the process, you can easily compare all the latest Mississauga mls listings on the rates of the asset and choose the one which rightly fits your budget.
• Mississauga real estate agent also makes sure that you don’t fall in the trap of a over priced property. As being experienced in local real estate market, he can judge, if a specific home or a condo is under, right or over priced listing and accordingly guide you through the best approach.
• When you decide to buy a property at Mississauga the first thing you need to do is to speak to a Mississauga real estate agent. He can within a short period of time, help you shortlist the properties, which meet maximum of your requirements. This can sometimes help you save days of research, which may or may not lead you to right direction. Using the local real estate professional…..is always the way to go!

One wrong decision of this magnitude can lead you to one of your most unpleasant lifetime experiences, which can hurt you financially and emotionally. “Leave it to the experts” is always the most sensible approach, you will always gain maximum with minimum efforts!

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