BOC Expected To Hike Interest Rate By Just 0.25%

By: CTV.ca News Staff

Date: Tuesday Sep. 7, 2010

While Bank of Canada governor Mark Carney is expected to raise interest rates Wednesday, experts are divided on whether a subsequent rate freeze or further hikes are best for economic recovery.



Carney is expected to raise the bank's target overnight interest rate to 1.00 per cent, up from the current 0.75 per cent.

BNN's Frances Horodelski said Tuesday 11 of 15 economists the network surveyed expect the rate hike, despite weaker-than-expected economic growth. Statistics Canada data released last week said Canada's gross domestic product rose two per cent in the second quarter, short of the bank's prediction of three per cent and sharply down from the 5.8 per cent jump in the previous quarter.


July's jobs number saw unemployment rise slightly to eight per cent, and summer real estate numbers showed a significant cooling in the housing market.

Hiking interest rates is a sign Canada no longer needs rates virtually at zero as economic recovery continues. However, some experts blame the recent weak economic data on rising rates, as higher borrowing costs dampen activity.

"If they put the brakes on by raising rates, that could push us further into the double-dip scenario," John Curran, a market analyst at Forex Canada, told CTV News.

TD Economics predicted last week that should the bank hike its target rate Wednesday, "this is likely to be the last for a while, as economic growth is falling short of the central bank's expectations."

Avery Shenfeld at CIBC World Markets said it would be a good idea for the bank to reconsider future rate hikes.

"We're not sure what the Canadian economy is going to do," Shenfeld told CTV News. "There's uncertainty about the U.S., and the benefits of low interest rates are something we'd want to keep for a while longer."

In contrast, the C.D. Howe Institute's Monetary Policy Council said in a news release last week the bank should hike rates to 1.50 per cent in March 2011 and to 2.25 per cent next September.

Four members of the council called for interest rates to hit 3.00 per cent by this time next year.

"Members who favoured more rapid increases in the overnight rate and higher targets in 12 months' time tended to emphasize Canada's position among countries less damaged by the crisis," the release said, "where the financial system and monetary transmission mechanisms have continued to operate, and where returning policy rates to levels consistent with longer-term stability in inflation is more appropriate."

With a report from CTV's Richard Madan


Asif Khan, Realtor
Re/Max All-Stars Realty Inc.

Paving The Road Through South Unionville

 

After years of waiting for the town to make a deal with a homeowner that dug his heals in, South Unionville Avenue will finally be opened up from Kennedy Road to McCowan Road.  Although this is great news for local residents that have waited patiently, the traffic around the school will be much greater.  While we had to make our way around Piera Gardens to Castan or Riverbend, the school was at a dead end, thereby making it a safe haven for children crossing.  With South Unionville now open, we need to be careful, as school is back in very soon. 
A great thing about the road opening, is that Don Hamilton fought hard for us to get a parking lane in.  The Town of Markham's meter maids were a hot topic during School Council meetings, and there were many an argument at the Markham Civic Centre's Parking Authority office.  I too had a few run-ins with these vultures as they waited for school to end to come by and ticket parents looking out for the safety of our children.  The parking lane solves the problem, and we have hopefully seen the last of the meter maids by the school.  Kudos to Don Hamilton for fighting for this. 
One thing I do hope for is that YRP show a strong presence to make sure speeding through our community does not become an issue, and that South Unionville does not become an alternate route for Highway 7 commuters. 
I'll update you once the road has opened up.  Till then, if you have any questions or concerns about our community, please contact me at 416-985-5426 or asif@asifkhan.ca.

Asif

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

 

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To "Summit" Up

Just on a flight back from Tom Ferry's Real Estate Summit that was held in California this week. FYI: Virgin America has arguably the friendliest staff on the ground and in the sky AND an off-the-chart entertainment system built into each seat. That makes this my new favourite airline. :)

Back to the Summit, some of the top Realtors in the world gathered for three spectacular days of sharing ideas and creating a better future. Isn't it amazing how like minded people can get together in a room for three days and create enough energy that makes them feel empowered to change the world, or at least the way the world thinks? I was pumped up after day one, throw in two more days, three evenings of sharing our crazy ideas and building them into strategies and connections around the world which has me itching to get back to work!!

I can hear the words from colleagues back home already. It's been more than a few times where others have said "those things are a waste of time", "I've heard it all before", or how about "if you just stayed and worked, you could have had a deal or two". But is it just about a deal or two? Is it about maintaining the status quo that allows people to be satisfied with mediocrity? Funny thing was that as I was reviewing the notes I made from my week away, the Harry Connick Jr. song "Just The Way You Are" came on. That should be the anthem for those that choose status quo shouldn't it? "Don't go changing.....I'll take you just the way you are". LOL

These events are all about growing, changing our thinking, pushing the limits, broadening our mind and about listening and learning from experts in areas that you are not. These events are about knowing there is more to the world than what you see. They are platforms to take some time out and question your progress, to evaluate your plans and adjust them just the same. They are about spending time with the sharpest minds in the business. Sharp minds sharpen each other just as sharp knives sharpen each other.

Spending time with the people that unselfishly share their ideas and practices allows you to be a part of something greater than you. The Summit was not about competition, it was about cooperation. It was about allowing each other to dream one size bigger and then developing strategic and realistic plans to make it happen. It was all the right people in the right place sharing the right ideas for all the right reasons.

What a refreshing change from the cesspool of negativity we are faced with day in and day out. Don't get me wrong, this isn't one of my media-bashing posts over their creative journalism that sucks the life out of the world, yet if the media focused on the right things and accentuated the positive, would the world not be a happier place? Okay, okay, I digress. I'll stop. :)

Here's a fact. There are only two types of people in the world: 1. Attractive 2. Retractive. Retractive people (media included....oh yeah I said I wouldn't go there...oops) make the world smaller. They slow it down for all those around them.

For those that "have heard it all before", why haven't you put any of the ideas in place? Ideas have a short lifespan. We need to act on them immediately, or they fizzle away. Why are you resistant to change? And then, when someone else implements ideas you see them as a threat? Are they a threat? They're only a threat to the status quo in your mind. The same status quo that has you singing "The Thrill Is Gone" (did you guess what genres I'm listening to on this ultra-cool sound system on this plane? Yup, jazz and blues and it's BB King's turn) in your head while buying into the media's stories from so-called experts. Is there anything more frustrating to these people than watching you do the same things that they said could not be done?

Don't be afraid of change. Embrace it. Learn to appreciate the thinking of others, and step outside of the box. If you obey all the rules, you miss all the fun. I'm not saying break all the rules, just push the limits and get out and create new ideas. Creativity is contagious and improves results. Just one idea springboards to other ideas. The thrill is NOT gone, but before you know it, it WILL be!

The passenger beside me just told me that their corporate strategy is to implement Social Media next year and get on Facebook. FACEBOOK!! Okay, so anyone else out there with the same idea, just an fyi: Facebook, Twitter, YouTube, etc. are so 2006 now! It's great that they are changing though, better late than never. Truth is that the world is changing fast. It is tough for anyone to function at it's rate of speed, so you really can't go it alone. Get the right people around your table and make things happen.

The most important thing you learn at these Summits is to get uncomfortable with the way things are. Change is the only constant in our world. On my flight to L.A., I sat next to a gentleman whose company is making and testing rockets for NASA. These rockets will revolutionize space travel. Each rocket costs $50,000,000 (that's 50 MILLION Dollars!!)To build. The first test failed. Did they stop and call it a day? No, they "tweaked" the process and last weekend had a successful launch! Being tested soon are rockets that can return to Earth. Once this happens, they can conceivably send people into space and bring them back for less cost than ever before. I've been invited to watch the next launch from Cape Canaveral this winter and cannot wait. Here's a company that has chose to make Space Travel cost-effective!! Unreal! Now take a look at yourself and tell me it is fine to continue doing things the same way - and mean it! Can't do it can you? And if you do, it just means you're lying to yourself and I.

Never be satisfied with mediocrity. According to the media, the worst may not be
over. But we all know how full of crap they are. I know the best is yet to come. If you're in, come sit at my table! I'll see you there.

Asif Khan, Realtor
Re/Max All-Stars Realty Inc.

The Truth About The Real Estate Market

Feels a little like 2008 again, doesn't it? 

In the latter part of 2008, the media brought a halt to the Real Estate Market through their doom and gloom reports.  Papers, in their best impersonation of Chicken Little, screamed "the sky is falling, the sky is.falling". Property values were supposed to dip by 20-30% according to the media's real estate "experts".  This had Buyers salivating at the thought of hot deals waiting around the corner. Sellers went into a holding pattern, waiting it out until the market would return to its glory.  Soon everyone realized that it was all just idle talk.

So what exactly happened in 2008?  The number of listings declined as sellers chose to hold on to their properties. With the limited number of homes for sale, and buyers sitting on the fences, sales declined. The holding pattern continued until the summer of 2009.  Listings hit all time lows, and when the buyers realized there was no price drop ahead, they came out in full force.  Selling prices started to climb, and climb, and climb some more. Overnight, more and more buyers realized they better jump in before they were left homeless. With 2008 buyers holding off until 2009, we had double the buyers out there and demand was significantly greater than supply. Therefore, one could argue that the media's Chicken Little Act (2008) caused the multiple offer phenomenon and forced buyers to pay more for the home they love than they would have.  Traditionally, the average sale price in the Toronto area is between 96 and 98% of list price. When supply and demand are in order, this is true. When listing inventory drops, sale prices often go above 100% of list due to multiple offers and limited choices for buyers.

Fast forward to Now. July 2010 numbers are out and the media is in a "creative journalism" frenzy once again. Realtors that try to eliminate misconceptions about the market are accused by the media of distorting the truth. The numbers speak for themselves and in their unadulterated state, they tell the true picture as follows:
Sure, July sales were down about 30%, but year-to-date sales are still up 12% according to actual sales data compiled by the Toronto Real Estate Board. Record sales in the winter and spring had sellers that would normally sell in the summer racing to hit the market early. With buyers hungry to scoop up the good properties, sales exploded for an incredible first half of 2010 for the Real Estate market. The average price for a home in the GTA was $420,482 in July 2010. This represents a 6% INCREASE over July 2009. Over the first seven months of 2010, the average price was up 12% from last year at $432,253. So if sales were down 30%, how did average price go up 6%?  Average price is dictated by competiton.  As number of listings decline and demand is greater than supply, average price will increase.

Let's look at what homes sold for in comparison to list price. Looking at the East districts, homes sold for 97% of what they were listed for in July of this year. Year-to-date figures have the average sale to list price at 99%, due to early 2010 averages hitting 103%.
In the West Districts, the results are very similar. July saw homes sell for 98% of list and year-to-date figures have homes selling for 99% of list. Again, early year sales were at 103% of list due to the shortage of listings on the market.
If you're in the Central Districts, July's "drop" in price - lol - brought sale prices down to 98% of list and forced the year-to-date figures down to 100% of list!! That is incredible!
Not to be outdone, the North Districts saw July sale prices at 97% of list price. These "poor" sales brought the North's year-to-date average DOWN to 99%!!

Earlier I spoke about potential summer sellers moving up into the winter/spring markets to get in on the action. That was just one factor in sales dropping 30% in July. Another factor was the awesome weather we have enjoyed. It has been years since we have had a summer as nice as this. The weather combined with the heated winter and spring selling market are the leading causes for July's 30% decrease in number of sales.

Now, unit sales have declined for July, listings inventory is reduced, and yet the media reports that price drops are on the horizon??  Ladies and gentlemen, the media's Chicken Little Act 2010 is now under way.  The market is ALWAYS good!  It is either good for a seller or good for a buyer. It is never good for both at the same time. Recent history has shown us that listening to the media's armchair realtors and their creative interpretation of sales records could have negative ramifications on the market. To recap 2008: Media reports tough times ahead for homeowners, Buyers freeze, Sellers hold off, and listings decline. Shortly after, buyers scramble to scoop up the limited number of listings on the market and multiple offers rule the real estate landscape, forcing buyers to pay premiums for their homes.

Currently, we are in a buyers' market. However, listings continue to decrease.  Sellers should be licking their chops as a sellers' market is around the corner. History is repeating itself.  The media is reporting a decline in prices, buyers are holding and sellers are waiting.  As listing inventory decreases further, we will begin a shift towards a sellers' market and voila!  Prices will start to rise. That's why savvy investors have started to scoop up the remaining inventory out there at favourable pricing. This is the time to buy if you intend on building a real estate portfolio of any size. Buy low, sell high. That is the secret that builds a fortune in real estate. 
Another point worth noting is that the sale of a home contributes tens of thousands in revenue back into the economy. The real estate market is the engine that drives our economy and was the leading factor in our nation's quick recovery from the economic downturn. Why does the media start harping on a home sales "decline" and threaten our economy yet again?  Only the editors will know the answer to that question. Rather than hunt them down and ask for explanations, let's just ignore their rambling and continue to lead the world back to economic recovery.

If you'd like a true market analysis of your neighbourhood, and in particular your home, give me a call at 416-985-5426 or email me at info@asifkhan.ca. 
 

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

 

Google me: Asif Khan ReMax

Follow me on Twitter  www.twitter.com/remaxallstar

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Investment Properties Made Easy.....$500 Gets You In The Door!

Have you ever wanted to get into the Investment Property game but just didn't think you could afford it?
Well, Glengrove On The Park offers you a tremendous opportunity. Years ago, Greenpark made a name for themselves by making it easy to become a home owner. $500 initial deposits made home ownership a reality for many. Glengrove On The Park is bringing it back!  This, and a comfortable deposit structure, allows you to get into your new condo without the stress of huge lump sum payments within a month or two. 

Furthermore, these aren't your regular condos, they're Bungalows In The Sky!  "Elevate Your Style" in the heart of Stouffville and increase your net worth at the same time.

All remaining Phase 1 units are being cleared out to make room for Phase 2's Grand Opening on September 18th. Register now for Phase 2, or better yet, strike a deal on a Phase 1 unit and make a few thousand dollars. Prices go up for Phase 2. Call me today or visit our new Re/Max All-Stars branch office at 549 Bur Oak Avenue in Markham!  Call Cristina at 647-477-3648 or me at 416-985-5426 to set up an appointment, and bring your cheque book. These will go fast. :)

If you know of any first time buyers wanting to ease into the market, or anyone wanting to relax in the elegant and sophisticated lifestyle that Glengrove On The Park offers, please forward this to them and have them register for Phase 2 today!!

What is Ramadan?

Every year I am asked about the importance of the month of Ramadan, and its significance.  As we head into the month of Ramadan today, I’d like to share what the month means and the goals and test for the month of Ramadan.

This year, Thursday August 12, 2010 marks the first day of the month of Ramadan for Toronto and area Muslims.  Ramadan is a very special time for Muslims around the world as they are called upon to re-evaluate their lives under religious guidance.  We are to make peace with those who have wronged us, strengthen ties with family and friends, do away with bad habits -- essentially clean up our lives, our thoughts, and our feelings. The Arabic word for "fasting" (sawm) literally means "to refrain" - and it means not only refraining from food and drink, but from evil actions, thoughts, and words. Those that are physically able will abstain from food, drink, and other physical needs from sunrise to sunset for the entire month. As a time to purify the soul, refocus attention on God, and practice self-sacrifice, Ramadan is much more than just not eating and drinking. 

·         Through fasting, a Muslim learns to sympathizes with those in the world who have little to eat every day.

·         Through increased devotion, Muslims bring themselves closer to God, and recognize that everything we have in this life is a blessing from Him.

·         Through increased charity, Muslims show generosity and good-will toward others. The Prophet Muhammad (peace be upon him) once said, "A man's wealth is never diminished by charity."

·         Through self-control, a Muslim practices good manners, good speech, and good habits.

·         Through changing routines, Muslims have a chance to establish a balanced and healthy lifestyle.

·         Through family and community gatherings, Muslims strengthen the bonds of brotherhood and sisterhood, in their own communities and throughout the world.

Therefore, fasting is not merely physical, but is rather the total commitment of the person's body and soul to the spirit of the fast. Ramadan is a time to practice self-restraint; a time to cleanse the body and soul from impurities and re-focus one's self on the worship of God.  As opposed to other holidays, when people often indulge, Ramadan is by nature a time of sacrifice.  While other holidays become commercialized, Ramadan has retained its intense spirituality.  The annual fast of Ramadan is considered one of the five "pillars" of Islam.

While Ramadan is a very special time for Muslims, but the feelings and lessons we experience should stay with us throughout the year. In the Qur'an, Muslims are commanded to fast so that they may "learn self-restraint" (Qur'an 2:183). Although this restraint and devotion is intensified during Ramadan, everyone must strive to continue these practices in our everyday lives. That is the true goal and test of Ramadan.

The month of Ramadan comes to an end with the spirit of thanksgiving.  The celebration is called Eid-ul-Fitr  and is observed all over the world by offering prayers and rejoicing on the accomplishment of an act of dedication and submission to God. Although this happy occasion of Eid-ul-Fitr, is marked with prayers and a feast, the most important part of the day is the remembrance of those who are afflicted with poverty, ignorance, disease and other misfortunes. The real happiness of Eid lies in sharing our happiness with others.  Charity is obligatory at the end of the fasting month and should be compulsorily paid to the needy by everyone with the means.  It has to be paid before Eid prayers start.

A prayer timetable is attached with timings for fasting during the month of Ramadan.  For all that will be fasting, may God accept your fasting, forgive your sins, and guide everyone to the Straight Path. May God bless us all during this month, and throughout the year, with His forgiveness, mercy, and peace, and bring us all closer to Him and to each other.  

I wish everyone a Healthy and Happy Ramadan.

Asif

Google me: Asif Khan Re/Max