Markham Real Estate Today with Asif Khan

Sales and Price Increase in May

 

June 3, 2011 -- Greater Toronto REALTORS® reported 10,046 sales in May 2011 – up six per cent compared to May 2010. This result was the second best on record for May under the current Toronto Real Estate Board service area. The number of new listings in May, at 16,076, was down 15 per cent compared to last year.

 

"Positive economic news and low borrowing costs led to strong sales through the first five months of the year, including the increase in May," said Toronto Real Estate Board President Bill Johnston. "At the same time, the market has become much tighter compared to last year, due to a substantial dip in new listings."

 

Homes were on the market for an average of 23 days and sold for an average price of $485,520– up nine per cent compared to $446,593 in May 2010. The strongest rate of price growth was experienced for single-detached homes sold in the City of Toronto.

 

Greater affordability, increased selection, and pent-up demand also key factors in 2011 season

Mississauga, ON (June 13, 2011) - Canada's recreational property market is gaining serious traction as savvy purchasers take advantage of ideal conditions, setting the stage for what is expected to be the best market in recent years, according to a report released today by RE/MAX.

The 2011 RE/MAX Recreational Property Report , examining sales and trends in 46 markets across the country, found that substantial equity gains and recovering stock portfolios in major centres have contributed to an upswing in demand from coast to coast. Demand rose in 78 per cent of markets, while sales were up or on par in 41 per cent of recreational centres. Inclement weather, including a late thaw and an abundance of precipitation, resulted in a slow start in many areas, but should be offset by stronger peak season activity. While starting prices have remained relatively stable across the board, there are deals to be had in virtually every region - especially at the top end. Luxury sales, as a result, have climbed in at least half the markets examined. Inventory levels are healthy throughout the country, although there has been some tightening reported at entry-level price points in about one-third of markets. Some of the best selection of product in recent years is now available.

Asif Khan, Sales Representative
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

Wilson's new deal on hold
 
May 27, 2011 00:05:00
Damien Cox      
Sports Columnist     
 
Two months ago, when Brian Burke was telling one and all that Ron Wilson would most certainly be behind the Maple Leaf bench next season, it was indicated and expected that a contract extension for the veteran coach would follow.

Well, it hasn't. And it won't.

Wilson, sources say, won't get more years on his already lucrative deal for a 56th birthday present on Saturday — and if he does eventually get an extension from the Leafs before his contract expires on June 30, 2012, he's clearly going to have to earn it by winning hockey games with far greater consistency than in his first three seasons at the Air Canada Centre.

Once, having a “lame duck” coach working in the final year of his contract would have been anathema to Burke. But something changed.

Maybe the Leaf president/GM looked more closely at his team's situation and Wilson's performance, and reassessed his position. Maybe the corporate landscape around him shifted.

The Leaf boss had to have been watching with interest over the course of the NBA season as his basketball counterpart within Maple Leaf Sports and Entertainment, Bryan Colangelo, twisted in the wind without a new contract beyond the conclusion of the NBA season. When the Ontario Teachers' Pension Plan later put their majority stake in MLSE on the auction block without Colangelo getting a new deal, the intrigue deepened.

Earlier this month, the drama ended when Colangelo signed his name to a relatively lean extension, two years plus one more at the club's option.

The message to Colangelo was clear: we want results, and we're not about to tie the hands of a new owner.

Burke isn't in that position himself. But his coach is, or will be next season. As a rule, Burke has believed a coach, in order to have the confidence and support of his players, needs the backing of the team beyond the current season. In other words, if you give the players even the slightest scent that the coach is easily disposable, they'll tune him out at the first bump in the road.

But with MLSE in flux, the support may not be there for Wilson after three straight seasons of missing the playoffs, winning 101 games and losing 145 in either regulation, shootout or overtime.

Yes, with 619 career victories, Wilson is seventh on the all-time NHL wins list, one behind Bryan Murray. But there are also 533 career losses, a figure that balloons to 617 defeats if you count the ones in shootouts and OT. There are 101 ties in there as well.

In 17 coaching seasons, Wilson's teams have missed the playoffs nine times, lost in the first round twice and made it past the second round twice, once to the 1998 Stanley Cup final. His playoff record is 47-48.

Throw in winning the '96 World Cup with Team USA and a silver-medal finish with the Americans at the 2010 Vancouver Olympics, and you have a decidedly mixed bag of results when it comes to the Leaf coach, who is at or near the top of the pay scale for NHL coaches.

Does Wilson need an extension to be able to do his job properly?

His experience and substantial reputation in the sport mean he doesn't; clearly Burke now believes that as well, or doesn't believe the MLSE corporate environment allows for any largesse to be extended to Wilson at this time.

Colangelo had to manage the Raptors without a safety net, and ultimately got a new deal despite a lousy season.

New York Rangers head coach John Tortorella worked last season in the final year of his contract, although it was revealed after the Blueshirts were eliminated that the club and coach had negotiated a new three-year deal sometime during the winter.

That's the scenario likely to unfold here, unless the Leafs get off to such a terrible start that Burke finally has no choice but to make a change after steadfastly standing behind Wilson, his old college pal.

Burke didn't hire Wilson but he believes in him, doesn't believe the team quit on the coach last season and interprets the Leafs' strong play in the final three months as evidence of a coaching staff making progress with a young team.

At the same time, Burke knows the win-loss numbers, and he knows that in three years the club has finished 30th, 30th and 28th in penalty killing and 16th, 30th and 22nd on the power play.

Burke has turned this team inside out and he can't do it again for this coach.

So, no extension. Not now. Perhaps in December, or next winter.

But Wilson's got to get there first.

Asif Khan, Sales Representative
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

CBC News - The Bank of Canada held its benchmark interest rate steady at one per cent on Tuesday, the sixth straight time the bank has opted to stand pat.

"The global economic recovery is proceeding broadly as expected," the bank said in a statement posted on its website Tuesday morning.

High energy prices and tax changes have kept underlying inflation relatively subdued, it said.

The bank also cited increased household borrowing and spending as potential contributors to inflation, but the persistently high Canadian dollar could mitigate that, and put downward pressure on the economic recovery.

The dollar was up almost a cent to trade at 103.36 cents US in the minutes after the rate decision was announced.

"Reflecting all of these factors, the bank has decided to maintain the target for the overnight rate at one per cent," the bank said.

After keeping its target for the overnight rate at a record low of 0.25 per cent through most of the recession, the bank hiked the rate by a quarter of a percentage point at three straight policy meetings in June, July and September 2010 before holding steady ever since.

The rate has a large impact on the rates banks offer to businesses and consumers for borrowing and saving. While it declined to do so on Tuesday, the bank left the door open to rate hikes in the near future.

"To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be eventually withdrawn," the bank said.

"Such reduction would need to be carefully considered."

The bank's next decision on interest rates is due on July 20.

Asif Khan, Sales Representative
Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage

 Understand the Risks of Getting a Mortgage  

Most homebuyers need a mortgage¹ to buy a home² —and whether you’re buying your first home, or moving up, a mortgage is likely the biggest financial commitment you’ll ever make.

Being ready for a mortgage involves a lot more than just qualifying for a loan. Because of the amount of money you borrow, and the time it takes to pay it back, getting a mortgage comes with certain risks. It’s important to know what these risks are and to be financially prepared for them.

Before shopping for a mortgage, take a close look at your situation— your finances, future plans and lifestyle— and consider how much debt you can comfortably handle.

1 The term “mortgage” includes all types of debt secured on property (e.g., a house, condominium, land, etc.). 2 The term “home” includes all types of homes (e.g., single family homes, semidetached homes, townhouses, condominium units, mobile homes, etc.).

When deciding how much money you can afford to borrow, consider:

•                      your current financial situation • the total cost of owning a home (e.g., property taxes,

•                      your future financial situation home repairs, condominium fees, etc.)

•                      how long you plan to own a home or have a mortgage • how much your home may increase or decrease in value

•                      any extra expenses you plan to incur (e.g., buying a car, over time starting a family, etc.) • the potential for higher mortgage payments

•                      the economic climate • the risks of a drop in your income

•                      interest rates • your personal tolerance for debt and risk

Getting a mortgage is an important decision. You may want to consider putting together a team of professionals, which could include a real estate agent, mortgage provider, financial adviser, accountant and/or lawyer, to help you with your decision.

Do you know the risks?

You may be able to afford a mortgage now, but your financial situation can change. Financial setbacks can happen at any time— not just when the economy is weak. Consider how you would manage if your income fell, your expenses rose and/or your mortgage payments increased.

Your income could fall and/or your expenses could rise if you:

•                      start a family • get into debt

•                      change careers/return to school • become ill or disabled, or get injured

•                      assume caregiver responsibilities • run into business or legal problems

•                      have an income based on sales commissions, tips, • get divorced or separated bonuses or other incentives • lose a spouse, partner or family member

•                      lose your job(s)

Depending on the type of mortgage you have, your payments could also increase if your interest rate rises, or if you have to renew your mortgage at a significantly higher interest rate.

Do you know the consequences?

Whether you’re late making mortgage payments, or cannot make them at all, not being able to meet your mortgage payments can have serious consequences. It is important to be aware of these consequences before taking on a mortgage.

If you cannot make your mortgage payments:

•                      You may have to pay late charges.

•                      You will damage your credit rating. Having a poor credit rating will make it difficult for you to obtain loans and make certain purchases in the future.

•                      Your mortgage may go into default and your mortgage provider may sell your home to cover your debt or become the owner through foreclosure.

•                      You may be responsible for paying any shortfall, if your mortgage provider cannot fully cover the debt by selling your home.

•                      You may lose the money you invested in your home, if you lose your home due to mortgage default.

Have you planned ahead?

When faced with financial trouble, meeting your mortgage payments can be stressful — or even impossible — without prior planning.

Before shopping for a mortgage, you should find out what sources of income and alternative funding options are available to

you, and develop a plan for making payments in hard times.

To make a plan for meeting your payments:

•                      Create a detailed budget for your household (including housing, food, utilities, etc.).

•                      Build up emergency savings for mortgage payments.

                        Clarify what payment options are available in your mortgage contract (e.g., some mortgage providers give you the option of applying prepayments you have made to a current  payment that is due).

•                      Investigate insurance products³ that may help you cover your expenses if you become ill or disabled, or get injured (e.g., disability insurance, critical illness insurance, etc.).

•                      Find out what tax credits you’re entitled to.

•                      Ask your mortgage provider, broker or agent if a better interest rate can be offered when your current term ends.

•                      Know what employment and government benefits you’re entitled to.

•                      Know whether or not, and how, you can access any other funds or investments (e.g., money in your registered pension plan or RRSPs).

•                      Consider consulting a team of professionals, which could include a real estate agent, mortgage provider, financial adviser, accountant and/or lawyer.

Before entering into a mortgage agreement, make sure you carefully read all of the information and ask questions if you don’t understand something. You may also wish to seek legal advice before signing a mortgage agreement.

Are you using the services of a mortgage brokerage, broker or agent?

If you plan to use the services of a mortgage brokerage, broker or agent, make sure the individual(s) and business are licensed with the Financial Services Commission of Ontario (FSCO)— the government agency responsible for overseeing the mortgage brokering industry in Ontario. To check if an individual or business is licensed to deal or trade in mortgages in Ontario, visit FSCO’s website at www.fsco.gov.on.ca and click on Mortgage Brokers.⁴

In Ontario, mortgage brokerages, brokers and agents are required to disclose to you the material risks of your mortgage in writing and in plain language. You are also entitled to have at least two business days to review a mortgage disclosure statement before you sign a mortgage agreement with a mortgage brokerage, broker or agent, or before you make a payment under a mortgage, whichever is earlier.⁵

3 Before purchasing any insurance products, it is important to make sure you understand their restrictions and limitations (e.g., when and how much they pay out). Speak to your financial adviser, accountant and/or lawyer for advice on these products. 4 Some persons or entities are exempt from the requirements to be licensed as a mortgage brokerage, broker or agent, and therefore will not appear on FSCO’s website (e.g., financial institutions such as banks and credit unions, and other persons and entities, such as lawyers, under certain conditions). 5 Under the Mortgage Brokerages, Lenders and Administrators Act, 2006, this disclosure requirement does not apply if you consent in writing to waive it before you enter into a mortgage agreement or make a mortgage payment.

About FSCO

FSCO is an arm’s  length agency of the Ministry of Finance that is responsible for regulating the mortgage brokering industry in Ontario. In order to carry out mortgage brokering activities in Ontario, all mortgage brokerages, brokers and agents must be licensed with FSCO.

In addition to mortgage brokers, FSCO regulates insurance, pension plans, credit unions, caisses populaires, loan and trust

companies and cooperatives. FSCO works with consumers, industry stakeholders and investors to provide regulatory services that protect the public interest, and enhance public confidence in and access to a fair and efficient financial services industry in Ontario.

For more information on any of these sectors, visit our website at www.fsco.gov.on.ca, or call our Contact Centre at:

(416) 2507250, Toll free: 18006680128, TTY Toll free: 18003870584.

For a complete list of licensed mortgage brokerages, brokers and agents, visit FSCO’s website at www.fsco.gov.on.ca

and click on Mortgage Brokers.

© Queen’s Printer for Ontario, 2009 ISBN 9781424995684

Mortgage Checklist

If you decide to get a mortgage,¹ it is important to shop around and see what mortgage products and features different mortgage providers are offering. The more mortgages you compare, the greater your chance at getting one that best suits your needs.

To make the most of comparison shopping, you need to know what options are most important to you and have questions prepared to clarify what different options are available. You may wish to ask potential mortgage providers, brokers or agents the following questions:

What type of mortgage is best for my needs? In particular:

•          a fixed, variable or adjustable rate mortgage

•          an open, closed or convertible mortgage

•                      What mortgage features and options are best for my needs? For example:

•          a short or long mortgage term

•          a short or long amortization period

Reports indicate that the US Housing Market recovery is underway. By September, the price declines should end and average price is expected to stabilize. With the Canadian dollar as strong as it has been over the last few months, the time is now to start scooping a few rental or vacation properties. Team Khan has put together a network of Realtors that will assist you in finding the right property for the best price. Have a read at the RIS article below and give us a call at 905-888-6222 for a consultation to help get you started.

Turnaround: 4 Months and Counting?

RISMEDIA, May 16, 2011—Price declines will end and average U.S. home prices will stabilize by Labor Day. Prices in even the hardest-hit markets will level out by the end of 2012.

That’s the latest prediction from the authoritative Moody’s Analytics and Fiserv, Inc, after an analysis of home price trends in 375 markets tracked by the Fiserv Case-Schiller Indexes.

Fiserv reports that home prices have fallen so far that they are at pre-bubble levels, creating affordable housing relative to income which, coupled with a slowly improving economy, will finally end price declines.

The slide in home prices has greatly improved home affordability. Relative to household income, affordability is at or close to pre-bubble levels in nearly every metro area across the U.S. This dynamic, combined with growing economic strength, leads Fiserv and Moody’s Analytics to project that average U.S. home prices will stabilize in the third quarter of this year. By the end of 2012, home prices in even the hardest-hit housing markets will level out.

However, while Fiserv and Moody’s project the national U.S. home price average will stabilize in the third quarter of 2011, a 3 percent decline is expected in the first half of this year.

“The first step toward restoring confidence in housing markets is an improvement in consumer sentiment, which we expect will increase slowly through 2011 due to stronger job gains and a falling unemployment rate,” says David Stiff, chief economist, Fiserv. “As confidence rises, the decline in home sales that started in 2006 will, finally, come to an end.”

Even as balance returns to the housing market, Fiserv Case-Shiller data forecasts the pace of recovery will be uneven across U.S. metro areas.

“Many metro areas have vast inventories of vacant homes, a consequence of both over-building during the bubble and high rates of foreclosure,” says Stiff. “New data from the 2010 U.S. Census provide estimates of the depth of the overhang of vacant homes in some markets. Between the 2000 and 2010 Censuses, the overall U.S. housing vacancy rate increased by 2.4 percentage points. In metro areas with the largest price bubbles and crashes, housing vacancy rates have jumped by 3 to 7 percentage points.”

The most stressed U.S. housing markets are characterized by unemployment rates that exceed the national average and high housing vacancy rates. Examples include Detroit, Las Vegas and Orlando, where unemployment tops 10 percent and vacancy rates are above 15 percent. Stiff noted the feedback loop that continues to exert downward pressure on home prices in these markets:

“Economic growth in these markets was highly dependent on residential real estate from 2002 to 2006, with many new jobs tied directly or indirectly to booming housing markets. When the bubble popped, these markets suffered the largest job losses. Rapidly falling employment undercut housing demand, causing home price depreciation to accelerate, leading to more job losses in residential real estate.”

The markets that escaped this dynamic are better positioned for more robust recoveries. Examples include Dallas, Milwaukee, Houston, New York, Baltimore and Pittsburgh. Stiff notes that while many of these metro areas did experience double-digit home price declines, their economic growth was more balanced during the boom years, relying less on residential construction. Today, these markets benefit from relatively lower housing vacancy and unemployment rates.

Asif Khan, Sales Representative
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

Interesting article on the Fixed Rate Mortgage being the dominant choice amongst USA homebuyers. With variable being pretty popular north of the border, looks like Americans are going with a Fixed rate, maybe due to economic concerns down south. Good news for them is that more homeowners selected 15-20 year terms rather than 30 year terms, this was fuelled by discounted rates for shorter term mortgages. This should help build some equity and reduce the risk for Freddie Mac and Fanny May.

Story attached below:

Fixed-Rate Mortgages Dominant Choice of Refinancing Borrowers

RIS Media, May 2011 - In the first quarter of 2011, fixed-rate loans accounted for more than 95 percent of refinance loans, based on the Freddie Mac (OTC: FMCC) Quarterly Product Transition Report released recently. Refinancing borrowers overwhelmingly chose fixed-rate loans, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or a fixed-rate.

News Facts

• An increasing share of refinancing borrowers chose to shorten their loan terms during the first quarter. Of borrowers who paid off a 30-year fixed-rate loan, 34 percent chose a 15- or 20-year loan, the highest such share since the first quarter of 2004.

• Eighty-four percent of borrowers who had a hybrid ARM chose to refinance into a fixed-rate product during the first quarter, continuing a pattern of the past few years of borrowers revealing a strong preference for fixed-rate over variable-pay contracts.

Quotes

Attributed to Frank Nothaft, Freddie Mac vice president and chief economist

• “Fixed mortgage rates averaged 4.85 percent for 30-year loans and 4.12 percent for 15-year product during the first quarter in Freddie Mac’s Primary Mortgage Market Survey®, well below long-term averages. The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 6 percent at the end of 2010. It’s no wonder we continue to see strong refinance activity into fixed-rate loans.

• “The mortgage rate on 15-year fixed was about three-fourths percentage point below that on 30-year fixed during the first quarter. For borrowers motivated to refinance by low interest rates, they could obtain even lower rates by shortening their term. In the first quarter we saw the largest share of borrowers shortening their term while refinancing in seven years.”

Asif Khan, Sales Representative
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

In the news today, rumours abound about Markham wanting to land an NHL Franchise. This would be an incredible boost to Markham's economy and establish Markham as the GTA's leader in growth. This is an exciting time to be a resident of Markham. Let's hope there is some substance to these rumours. The story first broke on AM640, a Toronto Talk Radio station. The story is attached below. Toronto/AM640 News

5/18/2011 Another NHL franchise may set up shop in the GTA according to AM640's Bill Watters.
 
Sources tell Watters a new arena, with seating for 19,500 is heading to the Markham Rd & Hwy 407 area, alongside a retail mall, and hotel.
 
The area would lie outside the 75 mile boundary of Buffalo, meaning the only team that would have to compensated for territorial infringement would be the Maple Leafs.
 
Calls to the Mayor of Markham's office have yet to be returned.

Asif Khan, Sales Representative
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

Mississauga, ON (May 18, 2011) - Improved financial standing among high net worth individuals is the major factor driving strong sales activity at the top end of Canadian housing markets, according to a report released today by RE/MAX.

RE/MAX Ontario-Atlantic Canada and RE/MAX of Western Canada examined 12 major centres from coast-to-coast and found that luxury sales have surged in close to two-thirds of housing markets between January 1 and April 30 of this year, compared to the same period in 2010. Leading in terms of percentage increases over the four-month period were Greater Vancouver (118 per cent) - where foreign investment has also played a major role - Ottawa (59 per cent), Calgary (51 per cent), Halifax-Dartmouth (27 per cent), Winnipeg (24 per cent), Hamilton-Burlington (13 per cent) and Greater Toronto (nine per cent). Six of the seven major cities - with the exception of Calgary - are poised to set new records in top-end activity by year-end. Several are just short of peak levels reported in 2010, such as Victoria, Regina, and London-St. Thomas.

Asif Khan, Sales Representative
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222