HOWS THE MARKET? TORONTO REAL ESTATE

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How's The Real Estate Market?

You've all asked a Realtor this question... and most of us hear GREAT!  Well what does that mean?

After all we are all hearing the world news on T.V. and many are probably getting anxious and scared about what the coming months will bring.

I'm no prophet that can predict the future and I won't try to be a pundit as they usually have contradicting predictions. 

So what can we expect?  We know definitely interest rates will continue to be low... at least for another couple years.  Banks have already lowered their 5 year rates which is a hint that central-bank rates are "probably" heading downwards or at the minimum won't change anytime soon. 

What about prices?  What I see in the resale market is that they have stabilized and home owners aren't getting the same gains for their house or condo as they were early summer. 

What about pre-construction prices?  So far there hasn't been any price reductions as pre-construction is fueled by Investors (up to 80%) and a lot of Foreign money.  Will this trend continue with all these new projects coming out?  I'll keep you posted if things change.  It's doubtful as Real Estate is one tangible investment people can invest in to "park" their money long term if you know what I mean.

So what Real Estate questions do you have that you would like answered?  Let me know at jasjagpal@gmail.com or call us... 

Jas Jagpal, Broker  Cell: 647.272.6629
Jess Jagpal, Realtor  Cell: 416.312.9742

RE/MAX Dynasty Realty Inc. 8 Shadlock St. Markham  O: 905-471-0002
E: jasjagpal@gmail.com Homes: www.TeamJagpal.com  Condos: TorontoCondoRealEstate.ca
Blogs:  www.TheCondoReport.ca    or   www.RealNuggets.ca
© 2011 Jas Jagpal, BROKER, BSc. York University

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November- Toronto Real Estate Report- Looking Good

Stats-lady

Depending on who you ask... you will get different responses.  Some will see the cup half full while others half empty.  I try to look at the entire puzzle and not just the lone pieces.  Our current real estate market is slower than last year.  That is obvious with the number of houses sold at 6681 from 8476 last year.

If that is all someone tells you, you'd think that we're in a bad real estate market.  But there is more to this puzzle.  Average price is up 5% to $443,729 from last year's $423,559.  So how does that occur?  Are we in a bad market or what?

Puzzle gets even more complicated with year-to-date sales of 75,582 up 1%.  How could this happen when there are nearly 1800 fewer homes sold in October this year?

What about the affordability factor?  In fact it is quite good.  Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis says " A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home". 

Now that sounds like good news for 1st-time buyers!

He further states "The outlook for mortgage rates and income growth over the next year is favorable.  The average home selling price could increase moderately next year and remain affordable for the average GTA household".

That's good news for all home owners.  You want interest rates to be stable.

What are these Buyers going to be buy in the upcoming months?  Many will be buying Condos as they are still the most affordable.  So those who are investing in Condos with me will have Buyers looking to purchase their properties.

What we currently are now in is a stable market... that is not increasing wildly like it did during the first half of the year.  The plus side is we have low, stable interest rates.  All this should be music to the ears of 1st-time home buyers, move-up buyers, and those who are looking to down-size and invest. 

Finally I hope to see Mayor Ford remove the Toronto Land Transfer Tax which will really be beneficial to people buying and selling houses.

So what do you think is the most crucial important thing to keep this current market strong?

Jas Jagpal, Sales Representative

“Different commission rates, fees and listing and marketing services may be offered by other RE/MAX Franchisees and Sales Associates in Canada.” 
Remax Dynasty Realty Inc. Brokerage  Independently Owned and Operated.  Not Intended To Solicit Buyers / Sellers under contract. 
8 Shadlock St. Markham, ON L3S 3K9   O:905-471-0002

© 2010- Jas Jagpal, 

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos, Toronto Real Estate: www.JasJagpal.com

 Thinking of Selling a House or a Condo - Find Out How Much You Can Save with a
FLAT FEE MLS listing.  www.GTAFLATFEEMLS.com

Posted on: www.1stoprealestate.ca : www.LinkToMorningside.com: www.MarkhamBoxgrove.com

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Canada Recovery Zooms, Rate Hike Widely Expected

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough Town Centre Condos Real Estate: http://www.JasJagpal.com

By Louise Egan
 
OTTAWA (Reuters) - Canada's economy expanded at the fastest clip in more than a decade in the first quarter, fueling expectations that on Tuesday the Bank of Canada will become the first G7 country to raise interest rates since the start of the recession.

Statistics Canada said on Monday that consumer spending, a hot housing market and a return of business investment helped boost gross domestic product by 6.1 percent at an annual rate in the quarter, the biggest jump since the fourth quarter of 1999.

Analysts had predicted 5.9 percent annualized GDP growth following revised 4.9 percent growth in the fourth quarter of last year.

"It would take some fancy footwork for the Bank of Canada to pass on hiking rates tomorrow after the Canadian economy just doubled the U.S. first-quarter growth pace," said Scotia Capital economists Derek Holt and Karen Cordes Woods in a note.

Two quarters of speedy recovery following three quarters of contraction have left real GDP about 0.5 percent lower than its prerecession levels, economists said.

The economy grew 1.5 percent compared with the fourth quarter of last year, Statscan said.

The GDP numbers were broadly in line with the Bank of Canada's latest projections. Most forecasters polled by Reuters expect the central bank to raise rates by 25 basis points on Tuesday to 0.50 percent.

"Effectively for them this is no surprise," said Doug Porter, deputy chief economist at BMO Capital Markets.

"I don't think it really changes the mix for the Bank of Canada from a purely domestic standpoint. There is just no debate that the Bank of Canada should be raising interest rates."

The Canadian dollar rose to C$1.0452, or 95.68 U.S. cents, after the data, up from Friday's North American finish of C$1.0520 to the U.S. dollar, or 95.06 U.S. cents.

Yields on overnight index swaps, which trade based on expectations for the central bank's key policy rate, now suggest there is a 83.6 percent chance of a 25 basis point hike on June 1, slightly higher than before the GDP report. Expectations for the July, September, October and December rate announcements have also risen, as have bond yields.

A second Statscan report on Monday showed producer prices continued to edge higher in April, by 0.3 percent, due to primary metals products prices. Crude oil prices drove raw materials up 1.7 percent in the month.

CONSUMER IS KING

Consumer spending continued to be a key driver of recovery from Canada's mild recession, and while exports continued to recover in the period, they were outpaced by import growth.

The housing market remained hot in the first quarter because of heavy investment in new construction and home renovations by owners taking advantage of a tax credit that expired on February 1.

If there were any surprise, they were that inventories rose after being drawn down for the previous four quarters and that there appeared to be strong momentum in the economy even at the end of the first quarter.

Monthly GDP growth in March topped estimates at 0.6 percent from February. This suggests second-quarter growth may also be above expectations even though analysts expect the effects of government and central bank stimulus to fade somewhat in the second half of this year.

"We are of the view that much better-than-expected consumer spending and housing market performances so far this year came at the expense of future growth," said economist Diana Petramala of TD Securities.

"The recent spending spree has left consumers even more fatigued and highly indebted than ever. As interest rates begin to rise and households have to devote a greater share of their income to servicing their debt, this may well constrain future consumer spending growth," she said.

The Bank of Canada projects second-quarter growth of 3.8 percent.

(Reporting by Louise Egan; Editing by Padraic Cassidy and Peter Galloway)

For all your real estate needs call Jas Jagpal at: 647-272-6629 or email: jasjagpal@gmail.com

Markham Boxgrove Homes, Morningside Heights Homes, Scarborough  Town Centre Condos
Toronto Real Estate – http://www.jasjagpal.com

Posted on: www.1stoprealestate.ca, www.linktomorningside.com, www.markhamboxgrove.com

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A Painless Way To Cut Expenses

With the current economic uncertainty, many people are looking for ways to reduce expenses.  A relatively painless way to reduce your monthly expenses is to have a second look at the way you’re managing your debt.

Over time, most of us take out a variety of loans for different purposes.  These can include things like credit card debt, car loans, home renovation loans and, of course, the mortgage.  And if you have more than one loan, you’re most likely paying a different interest rate on each loan.  One of the easiest ways to reduce your monthly interest costs is to consolidate your debt at the lowest rate.  Typically, your lowest-rate debt will be a loan that is secured by an asset, such as your home. 

If you have sufficient equity built up in your home, consider switching to a product that allows you to access your equity, such as a home-equity line-of-credit.  Then, use this line of credit to repay your higher-interest loans. In this way, you’ll be bringing all of your debts together into a single account, at a single rate. Some line-of-credit products even allow you to track debts separately within the account so you can continue to keep track of interest costs and repayment separately.  Not only will debt-consolidation save you interest but it will make it easier for you to keep track of what you owe and how you’re progressing in paying it down.

Reducing your monthly expenses is one way to deal with economic uncertainty – and it doesn’t have to be painful.  By borrowing smarter you can reduce your interest costs and increase your cash flow each month.

If you’d like to learn how to reduce your monthly interest costs, give me a call and I can discuss some options with you.
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Jaspreet Jagpal is a Financial Advisor, Insurnace Specialist and a RESP Representative
She's fluent in English, Punjabi, Urdu and Hindi and works with clients in the Greater Toronto Area.
T: 416-312-9742 | Email: jjagpal@rogers.com | www.LetsMakeADeal.ca

 

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