REDISCOVER REAL ESTATE

Big banks raise mortgage rates in sign era of historically low rates ending

TORONTO - Rising mortgage rates announced Monday signal the end of historically low home borrowing costs and present Canadian consumers with a dilemma: either stay flexible, hope for the best and ride out the next several months or lock in to long-term loans.

Three big banks raised their mortgage rates by more than half a point, effective Tuesday, and most industry watchers expect that's just the beginning of future small jumps that will hike the the cost of home ownership the rest of this year.

For consumers nervous about the changes, the security of five-year, or longer, fixed loans may be the best option, says one mortgage expert.

'If that (rising rates) causes you discomfort then perhaps a fixed rate's where you want to be and if a fixed rate is where you want to be," said Robert McLister, a mortgage planner and editor of the Canadian Mortgage Trends  website.

"If you're closing in the next six months, I suggest people do that quickly." [full story-->]

THE CANADIAN PRESS

It's only logical

Interested in ways to seal air leaks around the house to lower your heating bill?  How about saving energy with home lighting?  Planning on redoing the kitchen or bathroom?  Enter HouseLogic, a comprehensive website aimed to assist you in 100’s of home remodeling, energy saving tips.  Best of all….it’s FREE!

Last month, the National Association of REALTORS (American version of CREA) launched a new website, entitled HouseLogic.  This web site is designed to help home owners make smart decisions to maintain, protect, and increase the value of their homes. HouseLogic will help consumers take responsible actions pertaining to what is likely the largest investment of their lives.

With content covering home improvement, maintenance, taxes, finance, insurance, and even ways you can get involved in and enrich your community, HouseLogic can help you increase and protect the value of your home by helping you make confident decisions.  (remember this is an American site so the taxes and finances, insurance may not be applicable here in Canada)

Create to-do lists, and set project reminders, get costs estimates on various renos and home improvements (in USD). A very informative website that has it all.  Be sure to take a look!

How can I help?

_______________________________________________________________

b r i a n m a y e r real estate sales representative

Royal LePage Your Community Realty Brokerage

independently owned and operated

187 King St. East Toronto, ON. M5A 1J5

(416)-637-8000

Helping You is What We Do.

A referral remains the highest compliment I can receive.

www.brianmayer.ca

Earth Hour!

Earth Hour started in 2007 in Sydney, Australia when 2.2 million homes and businesses turned their lights off for one hour to make their stand against climate change. Only a year later and Earth Hour had become a global sustainability movement with more than 50 million people across 35 countries participating. Global landmarks such as the, Sydney Harbour Bridge, The CN Tower in Toronto, The Golden Gate Bridge in San Francisco, and Rome’s Colosseum, all stood in darkness, as symbols of hope for a cause that grows more urgent by the hour. [take action-->]

25 ways to mark Earth Hour -

Click here for some ideas for how to spend the hour!

Home sales shoot up as buyers jostle in sparse spring market

The Toronto Real Estate Board reported Wednesday that 4,353 existing homes traded hands during the first two weeks of March, up 70 per cent from the same time last year, when the market was in recession.

Very strong demand continues to dominate, lifting sales of existing homes to all-time highs ... yet keen buyer interest has largely failed to attract more sellers, resulting in a dearth of homes available for sale," said Royal Bank of Canada senior economist Robert Hogue.

Sales were also strong enough to break the mid-month peak set in March of 2006 by 16 per cent, according to the board. The average price for mid-month transactions was $440,153, up 20 per cent over last year.

Some good news for buyers: New listings increased by 34 per cent over last year. [read more-->]

Source Tony Wong- Business Reporter

Frantic housing market ready for calm - balance.

Supply shortages still expected in big centres, but wave of new listings elsewhere will be boon to buyers.

After a historic runup in prices, the Canadian resale housing market is set to cool down as a wave of new listings hits the market, providing badly needed inventory for hungry buyers.

The number of homes on the market nationally increased for the third consecutive month in February on a seasonally adjusted basis, according to the Canadian Real Estate Association. The industry group said yesterday there were 4.7 months of inventory available in Canada in February, up from 4.5 months in January.

That trend has put buyers and sellers in an equilibrium not seen since before the market downturn began about two years ago. The ratio of new listings to sales, an indicator used by analysts to gauge the health of the resale housing market, left the "favourable to sellers" range to the "balanced market" range in February, according to National Bank Financial.

It's a sign of stability for a sector that has seen wild price appreciations as buyers competed ferociously for the few homes on the market. [read more-->]
Source - Globe and Mail

Real estate market blows off some steam

Canadian existing home sales edged lower last month, as a cooling Vancouver resale market offset red-hot activity in Toronto, the Canadian Real Estate Association said Monday.

Home sales through the association's Multiple Listing Service fell 1.5% in February to a seasonally adjusted 42,799. Activity declined mostly in Vancouver, but this was offset by an equally large gain in Toronto.

"The Olympic Winter Games may have impacted February sales activity in British Columbia, so activity for the province in March will be closely watched," said CREA president Dale Ripplinger. The association expects overall activity in Ontario and B.C. to remain strong as buyers look to beat the introduction of harmonized sales taxes in both provinces. Compared to February 2009, residential sales activity was up 44% nationally. However, that year-over-year gain was smaller than the ones recorded in each of the past three months.

The average price tag on a home last month, $335,655, represents an 18.2% increase compared to February 2009. “As with sales activity, this gain was smaller than in the past four months, and year-over-year gains are expected to become further subdued going forward,” CREA said.

The seasonally adjusted number of new listings on the MLS system climbed another 2.4% in February to reach 73,849 units — the highest level recorded since October 2008. Months of available inventory also rose nationally for the third consecutive month to a seasonally adjusted 4.7 months.

This return to near-normal supply level should take some steam out of the market.

"Housing markets are becoming more balanced," said CREA chief economist Gregory Klump. "There are still a number of major markets where sales negotiations favour the seller due to a shortage of inventory, but supply has begun rising.” Evidence of cooling demand combined with moves by the federal government to tighten mortgage rules have deflated what some feared was an emerging housing bubble.

Still, Royal Bank of Canada predicts the cost of owning a home in this country will continue to rise in the coming months as exceptionally low mortgage rates and anticipated interest rate hikes starting mid-year fuel demand.

Canadian homeownership costs increased slightly across all housing segments in the latest quarter, the bank said Monday.  "The anticipated and gradual rise in interest rates indicates that affordability is likely to gradually get worse as rates return to normal levels," said Robert Hogue, senior economist at RBC.

"The significant drop in mortgage rates since late 2008 was the principal factor contributing to the overall improvement in housing affordability in the past year."

How can I help?

_______________________________________________________________

b r i a n m a y e r real estate sales representative

Royal LePage Your Community Realty Brokerage

independently owned and operated

187 King St. East Toronto, ON. M5A 1J5

(416)-637-8000

Helping You is What We Do.

A referral remains the highest compliment I can receive.

www.brianmayer.ca

Majority of Ontarians say buying a home is a good investment: RBC poll

One-third indicate they are likely to buy a home in the next two years!  

TORONTO, March 8 /CNW/ - Ninety-two per cent of Ontario residents feel that buying a house or condominium is a good investment and are most likely (34 per cent) to say they are likely to buy a home in the next two years, up from 30 per cent last year, according to the 17th Annual RBC Homeownership Survey.

When asked for the primary reasons for their interest, respondents cited good housing prices (32 per cent) and interest rates (20 per cent), as well as the upcoming HST (five per cent). The RBC survey, conducted by Ipsos Reid, found that, 68 per cent of Ontario residents think it makes sense to purchase a home now instead of waiting until next year. Ontarians are among the most likely (55 per cent) to say they intend to buy a bigger home.

"We're seeing a high level of confidence in the Ontario real estate market with the majority of buyers continuing to believe it's a wise choice," said Doug Crowe, vice-president, Mortgages, Greater Toronto Area, RBC. "Homeowners are also aware of how important their mortgage decision is and are looking for more advice on their options."  [read more-->]

How can I help?

_______________________________________________________________

b r i a n m a y e r real estate sales representative

Royal LePage Your Community Realty Brokerage

independently owned and operated

187 King St. East Toronto, ON. M5A 1J5

(416)-637-8000

Helping You is What We Do.

A referral remains the highest compliment I can receive.

www.brianmayer.ca

The Bank of Canada holds prime at 2.25%!!!

 
Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010

OTTAWA — The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.

The ongoing global economic recovery is being driven largely by strong domestic demand growth in many emerging-market economies and supported in advanced economies by exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial systems.

The level of economic activity in Canada has been slightly higher than the Bank had projected in its January Monetary Policy Report (MPR). The economy grew at an annual rate of 5 per cent in the fourth quarter of 2009, spurred by vigorous domestic spending and further recovery in exports. The underlying factors supporting Canada's recovery are largely unchanged - policy stimulus, increased confidence, improved financial conditions, global growth, and higher terms of trade. At the same time, the persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to act as significant drags on economic activity in Canada.

Core inflation has been slightly firmer than projected, the result of both transitory factors and the higher level of economic activity. The outlook for inflation should continue to reflect the combined influences of stronger domestic demand, slowing wage growth, and overall excess supply.

Conditional on the current outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.

The risks to the outlook for inflation continue to be those outlined in the January MPR. On the upside, the main risks are stronger-than-projected global and domestic demand. On the downside, the main risks are a more protracted global recovery and persistent strength of the Canadian dollar. The Bank judges that the main macroeconomic risks to the inflation projection are roughly balanced.