Market Watch – March 2009

Buyers rejoice…Sellers join the party

GTA Average Home Prices Down…GTA Median Home Prices Down…Mortgage Interests At Historical Low..

In keeping with rest of the country, Greater Toronto Area (GTA) real estate sales are also down compared to 2008. Even with the downturn, there is some good news for Buyers…and possibly Sellers. Here are some key points to note:

1. Average Home Price in GTA
Feb 2008: $382, 048
Feb2009: $361, 305
– Change of almost $21, 000 in one year resulting in GTA homes becoming much more affordable with lower prices than 2008

2. Median Home Price in GTA
Feb 2008: $324, 000
Feb 2009: $312, 900
– Change of over $11, 000 in one year resulting in more houses being available in lower price range than 2008

3. Mortgage Rates
Spring 2008: 5 year fixed @ 5.80% (approx)
Feb 2009: 5 year fixed @ 4.00% (approx)
– Change of almost 1.80% in one year results in lower monthly payments increasing home affordability. e.g. $250, 000 mortgage:
@ 5.80% would have monthly payment of approx $1570
@ 4.00% would have monthly payment of approx $1315
@ 4.00% would have monthly payment of approx $1102 with 35 year amortization
– That represents savings of approx $255 to $470 per month

Sellers can also take advantage of market conditions if upgrading their home. Sellers’ current home might not fetch the 2008 prices but their next home will also be that much more affordable to buy and finance. For the same reasons, Sellers’ current home has also become that much more affordable for the potential Buyer.

Great selection of affordable homes, record low mortgage rates, optional longer amortization periods, and various programs (Genworth, CHMC) can make YOUR dream home come true…sooner.

Source: Toronto Real Estate Board, Market Focus Feb 09

Market Watch – March 2009

Buyers rejoice…Sellers join the party

GTA Average Home Prices Down…GTA Median Home Prices Down…Mortgage Interests At Historical Low..

In keeping with rest of the country, Greater Toronto Area (GTA) real estate sales are also down compared to 2008. Even with the downturn, there is some good news for Buyers…and possibly Sellers. Here are some key points to note:

1. Average Home Price in GTA
Feb 2008: $382, 048
Feb2009: $361, 305
– Change of almost $21, 000 in one year resulting in GTA homes becoming much more affordable with lower prices than 2008

2. Median Home Price in GTA
Feb 2008: $324, 000
Feb 2009: $312, 900
– Change of over $11, 000 in one year resulting in more houses being available in lower price range than 2008

3. Mortgage Rates
Spring 2008: 5 year fixed @ 5.80% (approx)
Feb 2009: 5 year fixed @ 4.00% (approx)
– Change of almost 1.80% in one year results in lower monthly payments increasing home affordability. e.g. $250, 000 mortgage:
@ 5.80% would have monthly payment of approx $1570
@ 4.00% would have monthly payment of approx $1315
@ 4.00% would have monthly payment of approx $1102 with 35 year amortization
– That represents savings of approx $255 to $470 per month

Sellers can also take advantage of market conditions if upgrading their home. Sellers’ current home might not fetch the 2008 prices but their next home will also be that much more affordable to buy and finance. For the same reasons, Sellers’ current home has also become that much more affordable for the potential Buyer.

Great selection of affordable homes, record low mortgage rates, optional longer amortization periods, and various programs (Genworth, CHMC) can make YOUR dream home come true…sooner.

Source: Toronto Real Estate Board, Market Focus Feb 09

Seminar – Real Estate Fraud

Speaker: Peter Themos from Genworth Financial Canada
Location: Century 21 Green Realty office in Mississauga

Peter has been in the financial industry for over 10 years. Peter’s vast experience and knowledge helped make the seminar informative and interactive while supported with real life fraud examples.

Seminar Highlights:
1. Cost of Canadian Mortgage Fraud

  • 1999 – $73 Million
  • 2000 – $75 Million
  • 2001 – $300 Million
  • 2008 – $1.5 Billion

2. Common types of frauds

  • Straw borrowers
  • Flipping the property
  • Oklahoma scheme
  • Churning
  • Covenant take over
  • Equity skimming

3. Consequences

  • Personal property seized
  • Legal bills and fines
  • Jail time
  • Lose professional license
  • Loss of REPUTATION

We, as real estate salesperson and brokers, must be forever vigilant in detecting and reporting any suspicious activity during a transaction to help prevent fraud.

GREAT seminar Peter…I hope Peter returns with more educational seminars related to real estate industry.

Seminar – Real Estate Fraud

Speaker: Peter Themos from Genworth Financial Canada
Location: Century 21 Green Realty office in Mississauga

Peter has been in the financial industry for over 10 years. Peter’s vast experience and knowledge helped make the seminar informative and interactive while supported with real life fraud examples.

Seminar Highlights:
1. Cost of Canadian Mortgage Fraud

  • 1999 – $73 Million
  • 2000 – $75 Million
  • 2001 – $300 Million
  • 2008 – $1.5 Billion

2. Common types of frauds

  • Straw borrowers
  • Flipping the property
  • Oklahoma scheme
  • Churning
  • Covenant take over
  • Equity skimming

3. Consequences

  • Personal property seized
  • Legal bills and fines
  • Jail time
  • Lose professional license
  • Loss of REPUTATION

We, as real estate salesperson and brokers, must be forever vigilant in detecting and reporting any suspicious activity during a transaction to help prevent fraud.

GREAT seminar Peter…I hope Peter returns with more educational seminars related to real estate industry.