Ken at C21 Brown real estate serves Toronto GTA

6,000 houses for sale with increased affordability

Ken, Broker — Wed, 17 Sep 2008 21:26:00 GMT

With 6,318 in sales in August,The 2008 Toronto summer market is ending on a solid pace.Sales were down 22 per cent from the record-breaking August 2007 of 8,059 single family dwellings,This sales decline did not occur uniformly across the GTA. Units transacted within the City of Toronto, at 2,437, were down 25 per cent from the 3,243 recorded in August of 2007.Meanwhile sales within the 905 suburbs came in at 3,881, down19 per cent from 2007 (4,816 sales). Prices increased marginally in August, with the overall average moving up one per cent to $364,886 from the $361,890seen last August. Within Toronto proper, the average actually fell one per cent to $377,990 from last August’s $381,681.In the Rosedale part of Toronto (C09). All 29 sales were of detached homes, averaged $2,336,472. This is up six per cent from the $2,203,457.Outside of the City, on the other hand, prices rose two per cent to $356,657 from the $348,563 seen in August 2007. After having dipped by 13% in July to 186,500 units, Canadian housing starts bounced back up to 211,000 units in August, near the 215,000 level recorded in June. The surge in August was particularly visible for condo starts in the cities of Toronto, Brampton and Mississauga according to TD econo-mist Pascal Gautier.

TD Economics forecasts modest national average price growth of 2.0% this year and 3.5% next year, down substantially from the 10% annual pace of the last six years . Past price driven erosions in affordability are the main factor behind weaker sales, hence affordability is now set to improve . According to BMO economist Sal Guatieri home - owners who purchased six years ago would still have hefty capital gains, but those who bought during the past two years would face temporary losses -- temporary, because the long-run trend in household income, and hence house prices,is upwards”.

GTA PRICE UP headlines negative prospects positive

Ken, Broker — Fri, 15 Aug 2008 13:13:00 GMT

Overall, the GTA average price rose just over one per cent in July 2008 over July 2007 to $371,427 from $366,012, and a nine per cent increase from $342,034 recorded during July 2006.

Once again, price movements differed depending on the part of the GTA involved. Within City of Toronto boundaries, the increase was marginal (under one per cent) to $395,342 in July 2008 from $395,044 in July 2007 and up 10 per cent from the $360,409 recorded during July 2006.

Within the City of Toronto, the 3,132 sales recorded in July 2008 is down 14 per cent from last July’s 3,640 figure but up 10 per cent from the 2,852 sales recorded in July 2006. Comparing July 2007 with July 2006, a period before the Land Transfer tax went into effect in Toronto, sales increased 28 per cent.

In the 905 municipalities surrounding the City of Toronto, however, the average price climbed almost three per cent to $355,401 in July 2008 from the July 2007 figure of $345,967 and up eight per cent from $329,644 recorded during July 2006.

Negative headlines : positive prospects

We hear of General Motor’s Oshawa truck plant closure. But as part of the union settlement more vehicles to be built at new Oshawa plant; and senior workers to get pay packages with car purchase vouchers up to $35,000.

Reports of the loss of 55,200 jobs last month according to Stats Canada , may be unsettling , but 48,000 of these losses ,according to the same stats were part-time jobs centred in manufacturing ,business, building and other support services and educational services. According to CIBC World Market econo-mist Tal , “The number of full time employees in high paying sectors is rising steadily across the country despite a sharp drop in the overall number of new jobs.

In Ontario employment quality has improved by 4.7 per cent since the beginning of the year. Especially when many of the job losses were in the lower paying manufacturing jobs in wood, clothing, and textile industries.

With reports of US job uncertainty Federal Finance Minister Jim Flaherty reassures us that Canada’s labour market has out performed the US by creating 70,000 jobs since the start of the year, while the US has lost over 460,000 .

Reports of US housing price collapse under subprime financing ,worry not only US consumers but may make Canadians uneasy as well fearing a potential repetition of their experience in Canada .But as chief economist at the Bank of Montreal Dr. Sherry Cooper observed that the American like house price inflation is only part of the “Western Spike” reaching 38.7% in Saskatoon while the major markets in Canada averaged at 6.9 %.

Also American lenders offered loans to clients with no income nor assets, but Canada moved to protect and strengthen the Canadian housing market from the American bubble by having CHMC no longer accepting mortgage insurance for 40 year amortizations nor with 100% loan to value mortgages.

Canada Response to U.S. bank failure

Ken, Broker — Fri, 18 Jul 2008 03:01:00 GMT

On the Spot (CNSNews.com) - IndyMac Bancorp Inc. and the federal government’s Office of Thrift Supervision (OTS) have accused Sen. Charles Schumer (D-N.Y.), chairman of the Joint Economic Committee, of sparking a $1.3 billion run on IndyMac by releasing a letter predicting its failure.

The run by depositors resulted in one of the costliest bank failures in American history and a federal takeover of the loan giant on Monday.

Schumer, however, denied wrongdoing in a press conference in New York on Sunday and blamed IndyMac for “irresponsible” action that led to its demise. He also suggested that the OTS be dissolved into another federal agency for its lax regulatory policies, which he said allowed IndyMac to act irresponsibly.

“IndyMac was one of the most poorly run and reckless of all the banks,” Schumer said. “It was a spin-off from the old Countrywide, and like Countrywide it did all kinds of profligate activities that it never should have. Both IndyMac and Countrywide helped cause the housing crisis we’re now in."

The Canadian central bank was watching developments in the mortgage lending sector closely to ensure that the abuses seen in the U.S. subprime market do not occur in Canada. Therefore it made several changes.

Reducing the maximum amortization is going to put people who are at the fringes of affordability out of the market since the 40-year amortization has been very popular with younger people who are purchasing their first home," he said.

These changes also set a maximum of 45 per cent for the proportion of gross income that is spent on debt servicing and housing-related fixed or essential payments.

And mortgages that begin with "interest-only" payments and home equity lines of credit will also not be covered by the government guarantees.

Ottawa noted that reducing amortization from 40 years to 35 years on a $200,000 mortgage with a six per cent interest rate would increase the borrower's monthly payment by $41. The borrower would also save $49,000 in interest payments.

In Canada, the government said Canadian banks and other lenders have not written many government-backed mortgages to borrowers with low credit scores, but to ensure this continues the changes will establish a credit score floor of 620.

House prices have remained a bedrock of value for Canadians

Ken, Broker — Mon, 19 May 2008 04:14:00 GMT

According to Don Lawby the President of Century21 Canada,he finds that in a survey of 167 neigbourhoods,only 21 had prices decreases while the majority incresed in price in Canada. This is in contrast to the American experience with their housing market crash their credit crunch as well as the volatility of their stock market.

He expains this difference of the Canadian housing market based on conservative lending practices and regulations with strong banks and Canadian pride of ownership and diligence in building equity in their homes.

These characteristics will sustain the Canadian housing market as Canada's economic growth rate is expected to slow this year.

Bungalow For Sale in Brownsline/Horner

Ken, Broker — Sat, 01 Mar 2008 06:00:00 GMT

Cozy Urban Bungalow

• 1 bath, 2 bdrm bungalow - MLS® $344,500

Brownsline/Horner, Brownsline/Evans - Cozy Urban Bungalow In Treed&Garden Setting Of Sought After Alderwood Neighborhoood Of Parks, Lake,Schools And Shopping -Sherway Gardens, Go Train,Ttc,Qew,Freshly Painted,Recent Window Glass In Living And Dining Rooms,Hardwood Floors Throughout,Fridge2007,Furnace2005,Extras Stove,electrical fixtures Drapes,Main floor ceilings 8 feet,basement ceilings 7 feet

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