Tips on Buying a Home in Vaughan,Woodbridge and York Region.

Using some helpful strategies will help you purchase a home in Woodbridge Ontario at the best possible value. In today’s market, it is very easy to find  beautiful homes in your price range. Of course this cannot be done by yourself. You need a team behind you. For Buyers this is a totally  free. A Realtor like myself in Vaughan Ontario I have seen all kinds of markets.

Understand the present state of the market:

How you’re going to approach a home purchase largely depends on the kind of market you have. In a buyers’ market, you may be able to look for a home to buy more confidently. This is because there are many homes to choose from, properties are cheaper, there are more sellers and very few buyers. Sellers will probably compete to get your attention. Additionally, you will have the upper hand in terms of negotiating because sellers are aware that you’ll simply find another property if they refuse your conditions. <

In a Seller’s market it totally opposite of the Buyer’s market. You have a lot of buyers competing to get the best deal on very few houses on the market. Additionally you will not have the upper hand in terms of negotiations, because sellers will be aware that if you don’t buy, the next buyer will. In Woodbridge located in Vaughan and York Region we have seen these markets where there are multiple offers.

Seek for the right lender and identify the value of the house you can afford:

Though in a buyer’s and seller's market, it’s still very vital that you look for the proper lender. Understand the different terms on the market and compare the Good Faith Estimate as well as the interest rates. Find the best rate and term for you. Once you find the right lender, submit all the required requirements. After that, you ought to receive a prequalification letter from them. Use this to learn about the value of the house you can afford. Such letter is also necessary as it’s required by most Realtors.

Find the right neighborhood:

Before you find the right home, look for the right neighborhood first. You can search online to find the information you need. You can also ask the folks you know. They’ll probably recommend a perfect neighborhood for you. In order to make sure that you find the right neighborhood, visit it personally and have a feel of how it is to live there. You ought to also check the facilities  features of the neighborhood and also the accessibility to key facilities. Make sure that you have an idea of its crime rate as well.

Carefully check the property:

This is very important. Inspect it before you decide to buy it and check it once more before you close the deal. This way, you can be certain that the seller has made the changes you required, or no negative changes have been made.

Working with an agent is always an advantage when you purchase a house. You must work as a team. The Realtor will give lot of tips when looking for a home. If you are look for a home Vaughan, Woodbridge, or York Region let me know I will that you get the best service possible. www.VaughanHomeSales.com www.RossiDuo.com

Ottawa starting to think about strickter Mortgage rules.

Ottawa is considering new mortgage rules for banks.  The problem is that the canadian debt load is starting to become a concern.  Here is an article written February 11th.

Ottawa weighs stricter mortgage rules

 Tara Perkins and Boyd Erman

From Thursday’s Globe and Mail Published on Thursday, Feb. 11, 2010 12:01AM EST Last updated on Friday, Feb. 12, 2010 3:04AM EST

 Ottawa is considering new rules that would force banks to use tougher criteria to evaluate mortgage borrowers, a move to ensure that consumers aren’t taking on more debt than they can handle when they buy a home.

 The key proposal under discussion would see the creation of new conditions the banks would have to follow when determining whether a customer can afford a mortgage, according to sources. Those rules would require banks to consider whether a person who takes out a variable-rate mortgage on a home can continue to make the payments if interest rates were to go up significantly.

 Finance Minister Jim Flaherty is under pressure from a number of experts, including executives of major Canadian banks, to take action in the face of surprising strength in the country’s housing market, which shows no signs of letting up. The fear is that many of the borrowers who are buying homes because of unusually low mortgage rates will struggle with their monthly payments when interest rates rise. That could have a dampening effect on the broader economy by prompting consumers to cut back their spending as they direct all their money toward their mortgages.

More on mortgages

• Protecting a mortgage: Marissa and Marcello’s story • Three ways to create income from a reverse mortgage • Should I buy a home now, or wait and save more money?

• What does it really cost to borrow?

• Ready to sign on the dotted line?

• Getting the best mortgage rate   

 Other options that have been suggested include measures that would apply only to people with bad credit scores, or to people who are buying investment properties that they don’t intend to live in. But some banks argue that such rules would be difficult to enforce.

 Instead, the idea now gaining traction is creating new rules that would govern how the banks evaluate mortgage borrowers. For example, Ottawa could say that – in order to qualify for federally backed mortgage insurance, which most new mortgages require – a borrower seeking a three-year variable-rate mortgage must be evaluated as if they are applying for a five-year fixed-rate mortgage.

 If the three-year variable rate is 3 per cent and the five-year fixed rate is 5.5 per cent, such a rule would help ensure that the customer could lock in their rate and still afford their monthly payments when the Bank of Canada pulls the trigger on interest rate increases.

 While some banks are already doing this behind the scenes, there is no standardization. Each bank has its own underwriting criteria and some are tougher than others. For instance, some banks ensure that their customers can afford their monthly mortgage payments if they were 100 basis points or 200 basis points higher. What Ottawa is considering doing is imposing standard minimum rules that banks would use to determine whether customers can service their mortgage debt. It’s not clear how stringent the rules would be, or whether they would only apply to variable-rate mortgages. This would be a much easier move, politically, for Ottawa than increasing down payments – an idea prospective buyers are more likely to react negatively to.

 Peter Aceto, the chief executive of ING Direct Canada, said that such a move would be a better solution than raising down payments or decreasing amortizations.“This is a more surgical approach, as opposed to using a sledgehammer,” he said. “I think this is certainly a step in the right direction.”

 ING has recently begun inserting a new line on customers’ mortgage commitment letters that tells them not only what their monthly mortgage payments are, but also what they will be when interest rates rise.In an interview on the Business News Network yesterday, former Bank of Canada governor David Dodge said that “CMHC should be very careful about the terms and conditions on which they’re giving mortgage insurance.”

 A lot of people are probably being induced into the mortgage market who won’t be able to carry their mortgage debts over the long term, he suggested.

John Rossi

Sales Representative

RE/MAX WEST REALTY INC.

www.rossiduo.com

http://www.Vaughanhomesales.com

416-578-7675

Heated housing activity throughout 2009 lends little air to bubble theory in the GTA, says RE/MAX

Single-detached housing values remain slightly off peak 2008 levels in 27 per cent of TREB districts

Mississauga, ON (January 28, 2010) – Despite limited inventory levels in the Greater Toronto Area (GTA) in the latter half of the year, double-digit price appreciation failed to materialize in the single-detached housing category in 2009, says RE/MAX Ontario-Atlantic Canada.

In fact, an in-depth analysis by RE/MAX of 63 districts within the Toronto Real Estate Board found that detached housing values in 27 per cent of districts remained slightly off 2008 levels, while 57 per cent reported price appreciation of less than five per cent in 2009. Sixteen per cent of districts recorded an increase in average price in excess of five per cent. No double-digit gains were noted. 

“There is simply no evidence of a housing bubble,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.  “While sales were up considerably over one year ago—and supply was tight in many of the city’s hot pocket areas—the expected surge in average price did not occur.  Buyers remained cautious in their pursuit of homeownership—with most unwilling to overpay for the privilege. “ 

While one quarter of all TREB districts saw prices in the detached housing category soften in 2009, just over half declined by less than two per cent.  Those that saw prices fall by more than two per cent were primarily upper-end neighbourhoods—the vast majority located in the central core—which were slower to rebound once the market regained momentum.  By year-end, however, sales in all of these areas posted double-digit growth—a fact that clearly indicates a greater number of transactions at the lower end of the price spectrum.  Inventory may have also played a role as sellers held off listing their luxury properties until market conditions improved.

Leading the GTA in terms of price appreciation was South Pickering (E12) where the average has risen 9.4 per cent to $358,493; Malvern, Hillside, Rouge (E11) takes second place with a 7.3 per cent upswing to $368,095; North Pickering (E13) was ranked third with values climbing 7.2 per cent to $396,973; fourth spot goes to Port Credit (W12) in Mississauga where values have climbed seven per cent to $614,144; and rounding out the top five — the lone downtown Toronto district –was Riverdale, Leslieville (E01) where prices escalated 6.7 per cent to $522,017.  Ballantrae, Cedar Valley (N13) ranked sixth with a reported 6.4 per cent increase to $662,268.  In seventh place is Richmond Hill – North End (N05) with a 6.3 per cent increase in average price to $574,642.  The Applewood, Rathwood neigbhourhoods (W14) in Mississauga ranked eighth in terms of price appreciation, rising 6.1 per cent to $505,994, while Markham (N10) claimed ninth spot with a 5.3 per cent escalation in detached housing values, bringing the average to $510,268.  Bathurst Manor, Armour Heights (C06) in the city’s north end secured tenth place with a 5.1 per cent upswing in average price to $597,025.

The East clearly dominated the top five and affordability factored in heavily, with single-detached homes in both Pickering districts and Malvern, Hillside, Rouge, priced under $400,000. Young families – most buying their first home — were attracted to communities like Riverdale and up-and-coming Leslieville, while move-up buyers looked to Port Credit, which has steadily increased in popularity in recent years.

“First-time buyers were a driving force throughout much of the year, but their role was most noticeable in early 2009,” says Polzler.  “Almost one in every two homes sold was priced under $400,000 in the first quarter of the year.  An entirely different picture emerged in the final quarter when just one-third of homes moved under the $400,000 price point.”

As the move-up segment swelled, so too did demand for more upscale properties across the board.  Yet, despite the upswing, average price registered only a small percentage increase.  In the central core, for example, where the average price ranges from $572,529 in Don Mills to as high as $1,717,190 in Rosedale, overall values rose one per cent to $919,838, compared to 2008.  Unit sales in C-district jumped 31 per cent to close to 4,000 units.

The number of homes sold in the city’s north end saw the greatest percentage increase at 32 per cent to 8,843 units.  Average price in North district, which ranges from $398,864 in Newmarket to $700,499 in King City, rose two per cent overall to $555,616.  Housing sales climbed in the west, where values range from $298,136 in Brampton to $790,060 in the Kingsway, by close to 19 per cent to 12,453 units.  West district’s average price rose a nominal 1.5 per cent to $467,227.  The increase in sales was more moderate in the East End (including Scarborough and Pickering, Ajax), where values range from $325,393 in Bendale, Woburn to $691,128 in the Beach.  The number of detached homes sold increased 15 per cent year over year to 6,690.  Average price in East Toronto rose 2.6 per cent overall to $400,813. 

“After a dismal start, the stats confirm that 2009 returned to the healthy, upward trajectory that we have followed for much of the last decade,” says Polzler.  “We see detached homes continuing on that course in 2010, with moderate gains expected.  The detached housing category continues to be a solid gauge of the market’s overall performance, accounting for approximately half of the activity in GTA.” 

RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country.  The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries.  Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.  For more information, visit: http://www.remax.ca.

Business to pick up the slack says Bank of Canada Governor

 

Jeremy Torobin and Kevin Carmichael

Ottawa — Globe and Mail Update Published on Tuesday, Jan. 19, 2010 8:15PM EST Last updated on Wednesday, Jan. 20, 2010 6:51AM EST

 Mark Carney is counting on Canada’s private sector to carry the economic rebound when the government turns off the stimulus taps next year, but it’s not clear if business is ready to take the reins.

 The private sector “should become the sole driver” of growth some time next year, the Bank of Canada Governor said Tuesday, after keeping its benchmark lending rate at a record low 0.25 per cent.

 Mr. Carney reiterated a plan to keep rates at the current ultralow level through the middle of this year, depending on the outlook for inflation.

 For now, there remains plenty of slack in the economy, which continues to rely on government stimulus spending and low rates.

 “The bank is expecting that the fiscal side of the equation, in other words the government stimulus, either will not be adding to growth or might even be subtracting” by next year, said Douglas Porter, deputy chief economist at BMO Nesbitt Burns. “That’s a very compelling reason to believe that the recovery looking beyond this year will be subpar.”

 The bank’s comments serve as a reminder that when the $62-billion of federal and provincial stimulus plans fade out by the end of next year, consumer demand offers the best hope for filling the vacuum.

 In October, the Bank of Canada estimated that the end of fiscal stimulus programs would subtract 0.3 percentage points from average annual GDP growth in 2011, after stimulus spending added 1.3 points this year.

 Policy makers may update that in a quarterly economic forecast that they’ll release this Thursday.

 Mr. Porter noted that the expiry or withdrawal of fiscal stimulus measures throughout the Group of 20 – and the belt-tightening that will result as finance ministers scramble to trim their nations’ bloated debt loads – provide more reason to believe the global recovery will be a struggle.

 “Canada probably faces this issue a little less intensely than places like the U.S., Japan, England, and a good chunk of Europe. If anything, they face even more retrenchment.”

 For Benjamin Tal, a senior economist at Canadian Imperial Bank of Commerce, the central bank appears “too optimistic” about when the so-called output gap – overcapacity in economic production – will be closed and, consequently, about the private sector’s ability to replace the economic boost from federal spending and superlow rates.

 The central bank’s commitment to hold borrowing costs until July will likely remain intact, economists said, particularly because policy makers repeated that they don’t see inflation returning to their 2-per-cent target until the second half of 2011, a reminder that unless this changes, the bank is unlikely to speed up a return to higher rates.

 The bank tweaked its Canadian growth forecast slightly, saying the economy will expand by 2.9 per cent this year and 3.5 per cent in 2011 after shrinking by 2.5 per cent last year.

 In October the bank said the economy would grow 3 per cent this year and 3.3 per cent in 2011, after contracting 2.4 per cent in 2009.

 While the central bank said the outlook for global growth through the next two years is “somewhat stronger” than policy makers projected in an October forecast that they’ll update on Thursday, the global recovery that’s under way “continues to depend on exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial systems.”

 Policy makers also said Canada’s economy operated about 3.25 per cent below its production potential between October and December as “considerable excess supply remains,” and repeated that it won’t return to full tilt until the third quarter of 2011.

 Mr. Carney and his deputies largely echoed language from their December statement on the strong Canadian dollar’s effect on exporters, saying the loonie’s “persistent strength” combined with “the low absolute level of U.S. demand” continue to act as “significant drags on economic activity in Canada.”

 As a result, policy makers continue to look to domestic demand to drive the recovery, the bank said.

 The central bank said nothing Tuesday about the hot housing market, where some observers continue to warn that low interest rates might be fuelling a new bubble.

 On Thursday, the bank will release a full quarterly update of its growth and inflation forecasts, which will include a more detailed discussion of the economy and how policy makers see the recovery unfolding.   The next rate decision is scheduled for March 2.

Inflation within central bank’s comfort zone

This Globe and Mail article by Michael Babad Published on Wednesday, Jan. 20, 2010 7:10AM EST Last updated on Wednesday, Jan. 20, 2010 7:30AM EST

Higher gasoline prices pushed Canada’s annual inflation rate to 1.3 per cent in December, the fastest pace since February of 2009 but below what economists expected and well within the Bank of Canada’s comfort zone.

 On a month-to-month basis, consumer prices fell 0.3 per cent from November, Statistics Canada said Wednesday.

 The core annual inflation rate, which excludes volatile goods such as gasoline, and which the Bank of Canada uses as a guide in monetary policy, was 1.5 per cent in December.

 The consumer price report helped push down the Canadian dollar, signalling that the Bank of Canada can continue to hold its benchmark lending rate at a historic low as it need not fear inflationary pressures at this point.

 On Tuesday, the central bank kept its overnight rate at 0.25 per cent and promised again to hold it there until at least midyear depending on inflationary pressures.

 “While Canadian headline inflation has ticked higher in recent months, the upswing has actually been much milder than that seen in most of the rest of the industrialized world due to base effects,” said BMO Nesbitt Burns deputy chief economist Douglas Porter.   “U.S. inflation, for example, jumped to 2.7 per cent last month, while Britain’s rate jumped to 2.9 per cent. The strong Canadian dollar is helping keep both headline and core inflation in check. While there is likely to be one more bump higher in next month’s report, underlying inflation trends are expected to recede thereafter amid a slack economy and the hard-working loonie. At the margin, this report further reduces the need for the Bank to consider a quick exit strategy from its highly stimulative policy stance.”

 Also notable in the Statistics Canada report was that mortgage interest costs fell on an annual basis by 4.9 per cent, following on the heels of a 4-per-cent decline in November.

Fight this Harmonization Tax!

I read in the news paper today that politician are very concerned about the implications of the Harmonization Tax.  The conservatives want this tax right away.  The other parties are at a stand still.  They fear which way to go because of the implication it may have come election time.  The Conservatives say that it will help the economy, creating jobs by lower the burden on businesses.  Once again the middle class is the one being effected. When is it going to stop?  The middle class is going to have to take on another burden, with no say. Is it fair? NO.  Canadians are going to have to do something.  Letting politicians do what they want, has to stop.  Here is the link to the article:http://news.sympatico.ctv.ca/abc/home/contentposting.aspx?isfa=1&feedname=CTV-TOPSTORIES_V3&showbyline=True&date=true&newsitemid=CTVNews%2f20091126%2fHST_Ottawa_091126

John Rossi

Sales Representative

RE/MAX WEST REALTY INC.

www.rossiduo.com

http://www.Vaughanhomesales.com

416-578-7675

Good Things From The Bank of Canada.

Wow, great news The Bank Of Canada is committed to leaving the record low interest rate bench mark at .25% through to about June of 2010.

Bank of Canada is optimistic, saying they see strong household spending. Expert policy makers say that Canada’s GDP would come down 2.3 per cent in 2009, compared with predictions earlier this year that the economy would fall 3 per cent. Gross National Product will improve 3 per cent 2010, compared with an earlier policy makers predictions, that our economy’s engines would increase by 2.5 per cent in 2010.

John Rossi

Sales Representative

RE/MAX WEST REALTY INC. Brokerag

www.rossiduo.com

http://www.vaughanhomesales.com

grossi@trebnet.com

416-578-7675

Home sales in June.

GTA Resale Housing Market Posts Best June on Record

July 6, 2009 — In June 2009, Greater Toronto REALTORS® reported a record 10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.¹

“The record result in June is testament to the fundamentally sound housing market in the GTA,” said TREB President Tom Lebour. “An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market.”

The average price for June transactions was $403,972 – up by two per cent compared to the same month last year.

“The re-emergence of seller’s market conditions has exerted upward pressure on home prices,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing.”

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