Markham Real Estate Today with Asif Khan

When discussing the strength of Toronto's housing market I am constantly being reminded/warned that an increase in rates will cause a significant shift in the market and cause it to "crash". The naysayers would have a point if home buyers were purchasing properties they may not qualify for normally, and be relying on the low variable rates to carry it. However, with this same argument in mind, the banks have been using projected rates to qualify buyers over the past couple of years. Buyers have had to qualify on what the rate may be in 3-5 years, thereby reducing the risk to the banks. Now add the new, and much lower, fixed rates into the mix. Locking into your mortgage for five years, with a 25-year amortization, would surely counter the rate increase argument, as well as provide stability to consumer finances.

With bond rates increasing over the last couple of months, and with the USA and global economies on the rebound, signs are pointing to rate increases in the next little while. As inflation rises and demand for commodities increases, the likelihood of the Bank Of Canada increasing rates increases. Now before you rush out and lock-in your variable rates, remember that traditional rate increases are 1/4 point, maybe a maximum of a 1/2 point. If you have a variable rate such as prime - 0.75 or prime - 0.9, stay with it for now. If you're rate is hovering around prime, take advantage of the fixed rates available today.

Another point I always make to our clients is that you should never shop for a mortgage on rate alone. Sure the 2.99% 5 year fixed is a great rate, however take the time to understand all the pros and cons about that mortgage. In the end, a 3.25% mortgage which allows you some flexibility in making extra payments throughout the year or even a lump sum on the anniversary date may prove to be the better deal.

Locking into a fixed rate will surely reduce the likelihood of a rate increase putting homeowners at risk. Keep in mind that even if you stay with your variable rate and it increases from 2.25% to 3.25%, your payment on a $200,000 mortgage will go from approximately $875 to $975. It is not a significant increase to monthly payments, however it is a slight increase.

From a Real Estate perspective, a crash due to slight rate increases is highly unlikely. As mentioned above, the banks have been taking a conservative approach to approvals over the past few years. The only contributing factor that could significantly reduce the strength of the housing market would be a sudden increase in supply. Our limited inventory level and continuous demand are the driving force behind the market.

Team Khan provides our clients with a network of mortgage professionals that will guide them in making an educated decision when it comes to mortgages. For your peace of mind, I have arranged Mortgage Evaluation Seminars over the next month. Mortgage professionals from the major banks will be able to answer any of your questions and review your mortgage details with you. Give me a call at 905-888-6222 to reserve your spot as seating is limited.

Regards,

Asif

Asif Khan, ABR
Re/Max Hall of Fame
Re/Max Chairman's Club
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

Major Canadian real estate markets continued to show exceptional resiliency throughout the first quarter of the year, with strong demand and diminished supply setting the stage for a heated spring 2012, according to a report released by RE/MAX.

The RE/MAX Market Trends Report, highlighting sales, price, trends and developments in 15 markets across the country, found that 12 of 15 Canadian centres (80 per cent) were reporting year-to-date (January-February) sales activity ahead of last year’s levels, with more than half reporting double-digit increases. Low interest rates, coupled with strong consumer confidence levels and a mild winter, played a significant role in the upswing, ushering in an early start to the spring market. Average price climbed in 14 of 15 markets (93 per cent) examined, yet appreciation was more tempered, with only three markets posting gains in excess of 10 per cent. Tighter inventory levels at entry-level price points have sparked bidding wars—particularly in Winnipeg and the Greater Toronto Area—with similar conditions starting to emerge in Saskatoon, Regina, London-St. Thomas, Hamilton-Burlington, Ottawa, St. John’s, and Halifax-Dartmouth.

Given the current economic climate, the strength of the country’s housing market clearly reflects the value Canadians place on homeownership. One driving factor has been the overall performance of the market over the past decade. Existing homeowners have realized substantial equity gains, especially in recent years, and many are taking advantage of the combination of historically low interest rates and equity to upgrade. Perhaps more importantly, housing has outperformed just about every other asset class – and a principle residence is capital gains exempt – a fact that’s not gone unnoticed.

In terms of sales appreciation, the best performing markets heading into the traditionally busy spring season were Halifax-Dartmouth (35 per cent), Saskatoon (21 per cent), Saint John (20 per cent), Regina (16 per cent), St. John’s (12.5 per cent), Greater Toronto Area (12 per cent), London-St. Thomas (11 per cent), and Edmonton (11 per cent). Only Vancouver, Kitchener-Waterloo, and Winnipeg have experienced softening in housing activity so far this year. Sales are down 16 per cent in the Greater Vancouver, 4.5 per cent in Kitchener-Waterloo, and almost on par in Winnipeg.

Housing values are escalating at a steady pace in most major markets. Yet, gains are, as predicted, much more moderate than in years past. We expect this will remain the trend moving forward—in line with the Canadian economy, as GDP growth also moves ahead at a more subdued pace. Conditions will vary locally, with some markets exceeding expectations, largely due to the fact that the significant influx of inventory expected never materialized or, in the case of Saskatchewan and Newfoundland, the local economy has shown extraordinary strength. On the whole, this is a very stable and healthy housing market in line with traditional norms, with few exceptions.

Year-to-date average price in most major centres is also on the upswing. Winnipeg, Greater Toronto and St. John’s each posted a percentage increase of 10 per cent in the first two months of 2012. Values in Kitchener-Waterloo followed at nine per cent, while Regina and Saskatoon escalated six per cent.

Purchasing intentions have largely been driven by confidence in a buyer’s own employment and financial picture, followed by major lifecycle events. While global uncertainties caused some to pause in recent years, purchasers will only sit on the fence so long before the need to make a move becomes a stronger impetus. That reality is starting to fuel momentum, along with the domino effect of an enthusiastic entry-level segment. First-time buyers are driving demand in both the smaller and major markets, in turn sparking strong sales activity among move-up purchasers at the higher price points. As a result, the upper-end of the market has also held up well. There’s no question that the spring 2012 market will see all segments working in tandem.

Highlights:
Halifax-Dartmouth’s residential real estate market is firing on all cylinders thanks to the $25 billion shipbuilding contract awarded in the last quarter of 2011. Renewed confidence has bolstered homebuying activity, with sales up 35 per cent over one year ago.
Markets in Saskatchewan are also red-hot, with Saskatoon (21 per cent) and Regina (16 per cent) supported by strong economic fundamentals and increasing population levels in the province.
Tight market conditions have seriously hampered sales activity in Winnipeg, but purchasers remain undaunted. In February, 44 per cent of single-family homes sales sold above list price, while 31 per cent of condominium sales sold for more than ask.
In Greater Toronto, multiple offers are commonplace in blue-chip neighbourhoods, with an estimated 50 per cent of detached homes priced in the $600,000 to $900,000 price range selling for more than list price.
The First-Time Buyer’s Tax Credit and remediation of the Harmonized Sales Tax (HST) issue in British Columbia is expected to breathe new life into housing markets this spring.

Whether you're buying or selling, you know you're going to hear the following: Offer Dates, Bidding Wars, Multiple Offers, and Sold Over Asking. Bidding Wars seem to have become the norm in Toronto's heated Real Estate market. Homes are selling for an average of 100% of asking price, and there is very little room for negotiations. With limited inventory, buyers have shifted their focus from getting a "deal" to making sure you get the home you love. As per the mid month stats released by the Toronto Real Estate Board this week, the strong competition between home buyers in many parts of the GTA has resulted in homes that are priced correctly selling for their asking price or higher in shorter periods of time. On the condo front however, there are deals to be had. The increasing inventory has developers offering incentives that were unheard of in previous years for properties that have been available for some time now. This has also affected selling price in that some of these condos are selling for less now than they did pre-construction. The keys to purchasing your home for the right price or if you want to enter the market with a super deal on a condo is to be prepared and informed. It doesn't always take the highest price to win a bidding war. There are key contributing factors to an offer that can position yours head and shoulders above the rest. The three "pre"s can help you win the war - Prepare, Pre-inspect, Pre-qualify. Today's changing Real Estate landscape requires creative ideas to get your offer to purchase accepted. From a sellers' perspective, to obtain the best deal available you need to apply the same three "pre"s and use creative techniques to build interest and demand. Going into the process informed makes a world of difference. To discuss your home buying or selling needs and create a custom strategy that will position you to win, give us a call at 905-888-6222 and let's get it started!

Housing affordability improved in Canada during the last three months of 2011, Royal Bank of Canada said in a quarterly report Wednesday.

RBC said the financial burden of owning a home declined for the second straight quarter in last year’s fourth quarter, thanks to “softer” home prices and higher incomes.

That countered the deterioration of home affordability seen in the first half of last year, largely because of a rapid run-up in prices in the Vancouver area.

“As a result, the cost of owning a home at market price represented slightly less of a pinch on household budgets in the fourth quarter,” RBC chief economist Craig Wright said in a statement. “Continued low interest rates in 2012 will help keep housing costs at bay in the near term.”

The average proportion of pre-tax household income needed to own a standard two-storey home was down 0.8 of a percentage point to 48.1% nationally in the fourth quarter, RBC said. For detached bungalows, it was down 0.6 point to 42.2%, and for condominiums down half a percentage point to 28.5%.

Via: Derek Abma, National Post

When visiting the Competition Bureau of Canada's website and viewing their Privacy Notice, it reads "The Government of Canada and the Competition Bureau are committed to providing visitors with Websites that respect their privacy."

Their Privacy Statement contains the following wording:
"Personal information you provide is protected under the provisions of the Privacy Act.".

Does anyone else find it ironic, that with the above statements being part of their Privacy Policies, the Competition Bureau is now asking Realtor Boards to break privacy laws by disclosing confidential information the Brokerages have vowed to protect?

The Bureau feels that the disclosure of this personal information is in the public's best interest. In order to judge how the public feels about the Competition Bureau's threats to dismantle privacy safeguards, the Toronto Real Estate Board hired Angus Reid for a Vision Critical Poll. Results from this poll follow:

1. 75% of Ontarians want their personal information such as name and final sale price to be kept confidential and not released to the general public
2. 70% of homeowners do not want their personal contact information released to the public
3. 67% of Ontarians oppose any measure to make personal contact information such as name and address available to others who are not subject to professional code of conduct.

The public entrusts Realtors with their personal and private information and it is up to Realtors to protect their clients' personal information. As TREB President Richard Silver states "this is why TREB and Realtor Members are fighting for the privacy of our consumers.".

The mandate of the Competition Bureau does not, or at least should not, supersede Privacy Laws, especially since the violation of such laws could prove detrimental to the general public. Should public safety be jeopardized in lieu of information accessibility at any time? Furthermore, what does this have to do with "competition" anyway? Is there a good reason for your neighbours to know your mortgage details or sensitive property access information? In today's "Do Not Call List" era, should your name and contact information be available for all to see just because you've listed your home for sale? Should your pending sale price be disclosed to the public thereby eliminating any leverage you would have to attain the best price possible should your "conditional sale" fall through?

As a Realtor, I take my role to protect my clients' best interests seriously. I am at a loss to explain the Competition Bureau's high-handed and unethical behaviour. When is it okay for the safety of the general public to be hijacked by the government and how is this deemed to be appropriate by calling it a "competition" issue? In today's society, we have enough identity theft, mortgage fraud, and targeted domestic violence without more personal information floating around cyberspace. At some point protection of the consumer has to remain a priority.

I'm confident that my fellow Realtors feel the same way and will share this with their clients to help bring awareness to this matter. How can you help protect the consumer? Visit www.ProtectYourPrivacy.ca

I welcome your thoughts and comments.

Asif

Asif Khan, ABR
Re/Max Hall of Fame
Re/Max Chairman's Club
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

TORONTO, ON - The Fraser Institute has released its annual ranking of Ontario elementary schools, and it appears school boards here in the GTA are making the grade.

GTA schools tended to be performing above the provincial average in the latest ranking, according to Michael Thomas of the Fraser Institute.

"The provincial average is a 6 out of 10, and we're seeing that almost all of the boards in the Greater Toronto Area, except for the Durham Public District School Board are actually above that 6 out of 10 rating," Thomas said.

Within the GTA, an impressive 15 schools are rated 10 out of 10.

"To put that in perspective, across the province there are 19 schools in total getting that 10 out of 10, so 15 of them are right here in the GTA," Michael Thomas said.

Some of those schools include St. Justin Martyr in Unionville and Seneca Hill here in Toronto.

The Conservative think tank says their report card allows parents to review the academic performance of their child's school over the past five years and compare it to other schools in the province.

Toronto is home to three of the fastest improving elementary schools, with Stella Maris Catholic School, St. Angela Catholic School and Perth Avenue Junior Public School.

Asif Khan, ABR
Re/Max Hall of Fame
Re/Max Chairman's Club
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

By: LYNN GREINER, Globe and Mail

Research In Motion Ltd. has been the target of a lot of sniping in recent months. Hating it seems to have become a bit of a sport – the company apparently can’t do anything right.

Sorry to be a party pooper, but while the other platforms (which, yes, I have used) have many strengths, BlackBerry still has a lot going for it.

Here are 10 reasons why a BlackBerry can be the smartest choice when you’re picking a smartphone.

1. There’s something to be said for history. Independent technology analyst Carmi Levy points out that, since the original BlackBerry was designed to run on much slower networks with lower capacity, the devices made extremely efficient use of bandwidth, and today’s BlackBerry shares that heritage. “While overloaded wireless networks often crumble under the combined weight of Siri-using iPhone users, BlackBerry users manage to get their message through,” he says. “And stay under their monthly data caps.”

2. Efficient network usage pays off in unexpected ways. Less data sent and received means lower power usage, and that means longer battery life. It’s not unusual for my BlackBerry to go several days between charges. “The BlackBerry may not sport the latest, most full-featured apps when compared to the iPhone and Android,” notes Mr. Levy, “but none of that matters toward the end of the day when those other superphones are long dead and the only device with enough juice to send that mission-critical attachment has a RIM logo on it.”

3. Nothing can beat a good QWERTY keyboard. Say what you will about soft keyboards (the Windows Phone 7 version is quite nice, but for heavy messagers, QWERTY is best. And most BlackBerrys have good QWERTY keyboards. “If high-volume messaging-on-the-go is your thing,” says Mr. Levy, “you have pretty much only one choice.”

4. BlackBerry is the gold standard in mobile security. Transmissions are encrypted, end to end. It may not seem important at first blush, but with the increasing number of apps making financial transactions, be they banking or shopping or mobile payment, it’s critical to make sure those transmissions are secured.

5. Everything works together. “Its tight integration of hardware, operating system, software and services is a boon to consumers and businesses looking for a one-stop-shop solution,” says Mr. Levy. “You’re not just buying a device in the distant hope that it’ll work with the rest of your messaging solution. For many businesses, RIM is the only vendor they need to call.”

6. You can filter e-mail sent to the device. If you subscribe to a high-volume mailing list, for example, with any smartphone but the BlackBerry every single message from that list will wend its way to your device. That isn’t cheap. With a BlackBerry, you can prevent those messages from crossing the airwaves.

7. You can download headers only. This is a method some desktop e-mail programs have used for years over slow connections. You can configure your BlackBerry to download only message headers, and wait until asked to pull down the rest of a message. This gives you faster retrieval and uses less bandwidth.

8. Want to save even more money? BlackBerry compresses the data it does transmit. And this combined with header download and filtering can cut bandwidth usage (and roaming costs) tremendously. In a head-to-head comparison, BlackBerry roaming costs were one-tenth of those for a standard smartphone. That is not to be sneezed at.

9. A BlackBerry multitasks. It will happily run more than one app at a time. And it allows you to sync your data with a PC or Mac if you want to.

10. Its capacity expands. Unlike some other smartphones, it supports external storage such as a micro SD card, expanding its capacity by as much as 32 GB.

All this adds up to a solid, effective device. It may not be the shiniest, but it’s solid, reliable and efficient, and it saves money on bandwidth. In other words, it’s very Canadian.

The number of former U.S. homeowners switching to rentals remains a growing trend this year, according to a new poll by Apartments.com.

Some 33.6% of respondents looking for an apartment this year said they are previous homeowners, up from 20.5% in 2011, according to the poll.
The trend was also backed by a Reis report that the apartment vacancy rate dropped to 5.2% in the fourth quarter of 2011, down from 5.6% in the third quarter.

The higher demand has increasingly led to rent increases in most major rental markets.

That represents a potential boon for Canadian investors in the U.S., looking to maximize monthly cash flow. This latest report may also encourage other Canadian investors to look at properties south of the border in areas where home values remain as much as 30% to 40% cent off their 2007 peaks.

Still, the increased demand for leased accommodations has its downside for renters.

“The fact that more are entering the market continues to create a series of challenges for the potential renter, including fewer apartments to choose from, which can drive higher rent rates,” said Chris Brown, vice president of product management for Apartments.com.

Of those homeowners looking to rent in the poll, 26.3% said they are doing so because they believe renting is a more affordable option, and 21.2% prefer the flexibility of renting.

The survey also found a vast majority of renters are using online resources to judge potential apartments. There was a 9.2% increase in the number of respondents using review websites compared to last year. Additionally, 70.4% of respondents said online apartment classified listing websites were a top rental search tool.

The top apartment markets by vacancy rate include New Haven at 2.1%, New York at 2.4%, Minneapolis at 2.5%, Portland at 2.7%, and San Jose at 2.9%, according the latest figures from Reis for the fourth quarter of 2011.

Via: Canadian Real Estate On-Line

Asif Khan, ABR
www.asifkhan.ca
Re/Max All-Stars Realty Inc.
Re/Max Hall of Fame

OTTAWA — A new analysis suggests Canadians are becoming more hesitant to take on debt, despite typical holiday season largesse at the end of 2011.

The latest report of non-mortgage debt trends in Canada by the TransUnion credit reporting firm shows average credit floated up 1.4 per cent in the fourth quarter last year to $25,960.

That reversed three consecutive quarters of flat growth or reduction on everything from credit card debt to lines of credit, consumer and car loans.

But TransUnion officials note that the slight increase in average consumer debt at the end of 2011 is in line with historical increases in debt during the Christmas shopping season.

For the year as a whole, however, credit grew by just under one per cent, the lowest annual rate since TransUnion began tracking the measure in the first quarter of 2004.

The report will be welcome news to policy-makers, including the Bank of Canada, who have long worried that Canadians are taking too much advantage of super-low interest rates and taking on more debt than they can afford long-term.

However, reduced credit may also squeeze the retail economy and affect department store chains and discount and specialty retailers as consumers pare spending when money is tight.

In the most recently reported data from Statistics Canada, households now carry about 153 per cent more in debt than their annual disposable income, with about 70 per cent of that being mortgage debt.

Along with what has been detected as a slowing housing market, the new report suggests Canadians are either heeding the advice of policy-makers or reaching the limits of their tolerance for debt.

TransUnion also reports that:

Auto loans registered the biggest increase in the past year, up 9.7 per cent;
Average credit card debt posted a modest increase in the fourth quarter but is down 1.5 per cent from a year earlier;
Lines of credit increased by 1.1 per cent in the past year;
And although debt has risen substantially, delinquency levels continue to remain low in Canada.
Via: @CP24

The winning bidder was just announced in the competition to provide the boat service at Niagara Falls and it is California based Hornblower Cruises. This could mean that the Maid Of The Mist brand is on its way out unless Hornblower negotiates a deal with Maid of the Mist Steamship Corporation to use the brand. Some will argue that the Maid of the Mist brand is an icon and should remain, however we'll have to wait and see. Maid of the Mist will continue operations through the 2013 calendar year. Hornblower will generate billions of dollars in revenues and hundreds of millions in profit with absolutely no competition. It isn't clear whether Maid of the Mist reapplied, nor is it clear if there was other bids. I'm sure we'll hear more on this in the upcoming weeks/months. What are your thoughts on a California company taking over from Maid of the Mist?