Gail Reeves Reid

Now Is That Good or Bad?

As anticipated in the present financial atmosphere, home buyers last month across the GTA reacted to the negative climate with reluctance to support previous home prices. The number of sales in October was down one third from 2007 and prices across the Toronto area were an average of 10% below October 2007. The Toronto Real Estate Board reported a greater drop in the city of Toronto that in the suburban area... 13% vs. 8%. Perhaps the new Toronto city land transfer tax had something to do with that?

While we are prone to label such a market "bad", that moniker may not be as deserved as you think. It depends on your viewpoint. Houses may not continue to sell at the same inflated price levels... and at the same pace... as they may have earlier this year, but that is not all bad. A more relaxed market takes a lot of stress out of the process and gives buyers the luxury of seeing a home they like one day... sleeping on their decision... and still having the opportunity to buy it the next day... without the likelihood of being involved in multiple offers. While sellers may have to accept less... they'll love it when they in turn are on the buying end. Those who have sufficient equity may also find the opportunity they have been waiting for to move up to the dream home that was previously out of reach. Here is an example...

Assume for a moment that real estate prices in a given area have dropped 10%. A home selling previously for $400,000 may now go for $360,000... a drop of $40,000. On the other hand, the owners may have had their eyes on a home in the $500,000 range but couldn't see their way clear to spend the extra $100,000. After a reduction of 10% that home is now just $450,000. The new difference of only $90,000 may be comfortably within the reach of our buyers. Of course, a drop in excess of 10% would only bring the prices closer... and as we have always known when trading automobiles, it is the difference that counts.

Closing costs calculated on a percentage basis, such as real estate fees, would also be significantly lower... as would land transfer taxes.

If you have thought of moving up for awhile, there may be no time like the present to make your move.

For Homes for Sale in Meadowvale, Mississauga, Brampton and Oakville see Sell My Home in Mississauga Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

A glance at this month's graph of resale home prices across the GTA will reveal that May followed the anticipated pattern, with 9, 411 sales of single family residential dwellings. As Toronto Real Estate Board President Maureen O'Neill suggested, "A 9000-plus sales month is certainly indicative of a healthy market." While the number of sales fell below last year, the number of listings was also down, leaving the supply and demand balance fairly similar to previous years.

The second thing to note is that from the end of May through August, it is traditional for prices to decline. This is usually due to many factors, including the fact that during any given two-week period in these months, a substantial percentage of the population is on vacation... including Realtors. Most families anticipating a move before school begins in the fall organize their moves by the end of May, thus reducing the demand... and supply... in the summer market place.

If you are planning a move in the next few months, you should be prepared to be a bit more competitive in your listing price that you might have been 60 days ago, however, when you buy, you will likely make up the difference. You will also be able to take advantage of the very low interest rates now offered... which, in the long run, can affect your carrying costs more than a few thousand dollars difference in price.

For Homes for Sale in Meadowvale, Mississauga, Brampton and Oakville see Sell My Home in Mississauga Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

Although Mississauga is running low on new lands for development, for the 11th consecutive year, the City of Mississauga has exceeded the $1-billion mark in the value of building permits issued According to the December year-end Building Report, the City issued a total of 4,571 building permits in 2007, exceeding the 2006 year-end total by 6.5 per cent. The City's building statistics show a nine per cent increase in residential construction value over last year and a five per cent increase in construction value for churches/schools and public/city development.

"In Mississauga, our 57 to 43 per cent split between residential and commercial/industrial and other construction value virtually achieves an ideal 60 to 40 per cent balance," said Mayor Hazel McCallion. "This balanced development makes our city a great place to live, work and and operate a business."

According to the December year-end Building Report, the City issued a total of 4,571 building permits in 2007, exceeding the 2006 year-end total by 6.5 per cent. The City's building statistics show a nine per cent increase in residential construction value over last year and a five per cent increase in construction value for churches/schools and public/city development.

Here is how the building permits were distributed:

Residential Construction - 3,426 new units with a total value of $682 Million or 57%

Commercial Industrial - 56 new buildings with a total value of $374 million or 31 %

Other Construction - 10 buildings with a total value of $143 million or 12 %.

Two new multi-unit projects by Erin Mills Development Corporation in the city's west end will add 503 new units. Tridel's Ovation Community and Amacon's Eden Park complex -- will add 574 new residential units in Mississauga's downtown where development is continuing to transform the Mississauga skyline. These residential units are mainly condominium projects in this high density area in the city's core.

In south Mississauga, Trillium Health Centre is adding a new seven-storey wing (118,403 sq. ft.).

As well, the City of Mississauga is completing construction of its new Sports Complex at the Hershey Centre, scheduled to be fully opened in spring 2008. "We're expecting another banner year in 2008 as development continues to shape our downtown, and as new and re-development projects take place in every area of Mississauga," said the City's planning and building commissioner, Ed Sajecki.

For Homes for Sale in Meadowvale, Mississauga, Brampton and Oakville see Sell My Home in Mississauga Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

Home sales valuing a total of $174,793,011 were recorded in Mississauga this December. That's down 42 per cent from the November total, and 20 per cent higher than the total in December 2006.

Over the course of the month, 515 residential properties traded hands in the area served by the Board. This is a decrease of 40 per cent from November; this represents a two per cent decrease over December 2006.

The average price of homes sold this December through the local MLS® system in Mississauga was $339,404, which is two per cent lower than the average recorded in November 2007 and 22 per cent above that recorded in December 2006. The Board cautions that the average residential price is a useful figure only for establishing trends and comparisons over a period of time. It does not indicate an actual price for a home due to the wide selection of housing available in the area.

The latest residential MLS® forecast prepared by The Canadian Real Estate Association says that national MLS® home sales activity will break all previous annual records in 2007 before easing next year to its second highest level ever. Activity is forecast to edge slightly lower in 2008, but prices are forecast to set new records this year and in 2008.

The CREA forecast notes that MLS® average price increases will be smaller next year. In Ontario, the CREA forecast says 206,850 residential units will be sold through the MLS® systems of Boards and Associations in Ontario in 2008, a 2.5 per cent decline from 2007. The average MLS® residential price in Ontario is expected to increase 4.5 per cent in 2008, to $308,700.

A total of 556 new residential listings were added to the local MLS® system in Mississauga this December, down 52 per cent from November. At the end of the month there were 1,406 active residential listings posted by Mississauga REALTORS® on the local MLS® system.

For Homes for Sale in Meadowvale, Mississauga, Brampton and Oakville see Sell My Home in Mississauga Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

One of the most frequently asked question this time of the year is when should a seller list put their home on the market? The answer is , it all depends. Factors to be considered are

1) Does your Mississauga home cater to singles or couples?

2) Would your home be suited for families with school age children? Is it a detached, semi-detached or town home in Mississauga?

If you own a condominium, generally speaking, condo sales are steady throughout the year. Of course, depending on supply and demand, if there is limited inventory in your neighbourhood, now would be good time to be in the market. The condo market in Mississauga has been quite steady for 2007.

If your own a detached, semi detached or a town home in Mississauga, the spring is the ideal time for sellers to list their home. The spring market is typically the busiest and the best time of the year. Inventory levels are high and demand is usually quite high. The spring market usually starts in February and ends in early July. Buyers purchase in the spring and close in late spring or early summer so they can familiarize themselves with their new neighbourhood prior to the start of the school year.

According to the Toronto Real Estate Board statistics, May 2007 set a new all time record with the highest inventory of homes ever recorded.

If you are thinking of selling this year, now is the time to get ready for the spring market. Be the first one in your area to be on the market. Let's get started by having a pre sale consultation so if there are significant work to be done before listing your home, it can be completed before the end of January.

For Homes for Sale in Mississauga, Brampton and Oakville see Sell My Home in Mississauga Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site