Mississauga Housing Market - Taking a Brief Pause

28 July 2017
Larose Team

Mississauga, ON - The June Mississauga housing market stats are following the slow-down trend in the GTA as the number of unit sales decreased by 62% from 2016. On the positive side, the average sales price in June increased by 5% year over year for all property types in Mississauga. “The number of new listings continues to climb as home owners are listing their properties because they feel price growth may have peaked” says Kevin Larose of the Larose Real Estate Team. “What we are seeing now is a more balanced market with better supply for buyers which is moderating the price increases’ says Kevin. We are keeping an eye on interest rate changes and sales -to-new-listings ratios which are shifting as more listings come on the market. Also noteworthy- The Bank of Canada recently raised interest rates by 25 basis points on fixed mortgage rates. This was the first rate increase in 7 years.

The year-over-year dip in home sales we have experienced in the GTA over the past two months seems to be the result of would-be buyers putting their decision to purchase temporarily on hold while they monitor the impact of the Fair Housing Plan. ‘We are starting to see buyers get back into the market, because if you are not a foreign buyer, you aren’t affected by these changes-but by what you are reading.” We have many buyers looking to
purchase before the start of the school season. There is still a high demand for good homes in good areas.”

Toronto consistently ranks as one of the top cities in the world to live, so it’s no surprise there is such a demand for real estate here. There are more people moving to the city every year, and this number will continue to increase. Unless there are more rule changes made in the future- or interest rates increase rapidly, the Toronto housing market is just taking a brief pause before prices and activity continue to climb.
Have questions or comments? Email us at info@laroseteam.com


How the rate hike affects homeowners and buyers

17 July 2017
Larose Team

The Bank of Canada has increased its benchmark interest rate for the first time since 2010, a sign that the economy is improving enough to allow borrowing costs to rise from historic lows reached in the aftermath of the global financial crisis.

The overnight lending rate was raised to 0.75 per cent from 0.5 per cent, where it had been locked for two years as the country adjusted to the challenge that low oil prices posed for an already sluggish economy. Many economists expect the central bank to hike again this year.

When the Bank of Canada changes its benchmark rate, the move ripples through to other interest rates, including those of mortgages. With that in mind, here is a guide to how the rate hike will affect homeowners and prospective buyers.

Homeowners with fixed-rate mortgages

There is no immediate impact on payments for existing mortgages. Only when the mortgage comes up for renewal would higher rates affect payments.

The interest rate on fixed-rate mortgages is influenced by the interest rates on bonds issued by the federal government, not the Bank of Canada’s overnight rate.

But if the central bank is confident enough about the economy to start pushing the overnight rate higher, expect interest rates in the bond market to rise as well. This explains how an increase in the overnight rate can indirectly affect fixed-rate mortgages.

Homeowners with variable-rate mortgages

The interest cost on variable-rate mortgages is pegged to your lender’s prime rate, minus whatever discount you negotiated. The prime rate is in turn guided by the Bank of Canada’s benchmark overnight rate. Payments on most variable-rate mortgages will be adjusted higher in a matter of days or weeks to reflect an increase in the overnight and prime rates. (Canada’s Big Five banks raised their prime rates to 2.95 per cent, effective Thursday, following the central bank’s move.)

With some variable-rate mortgages, payments remain the same for the duration of the term. But there are adjustments going on in the background. As rates rise, more of your payment goes toward paying interest and less goes toward the principal. This will increase the amount of time it takes to pay off your mortgage unless you increase payments on renewal.

Borrowers tend to use the term “variable-rate mortgage” to describe all mortgages where rates can fluctuate during the term of the loan. However, lenders use the term “adjustable-rate mortgage” to describe mortgages where payments are reset according to changes in the lender’s prime rate. Variable-rate mortgages technically apply to those where the mix of principal and interest changes, but not the amount of the payment.

One final note: Toronto-Dominion Bank is an example of a lender that has a “mortgage prime rate,” a unique in-house rate used for pricing variable-rate mortgages. TD’s mortgage prime has been higher than its conventional prime rate. After the central bank’s hike, TD raised its mortgage prime rate by 0.25 of a percentage point to 3.1 per cent.

Prospective buyers

It could become tougher to qualify for home ownership.

Federal rules unveiled last fall require home buyers with a down payment of less than 20 per cent to “stress test” their ability to carry mortgage payments at whichever is greater: the negotiated rate in their mortgage contract or the Bank of Canada’s conventional five-year fixed posted rate.

The central bank’s rate is based on posted five-year fixed mortgage rates at Canada’s largest banks, and was most recently set at 4.64 per cent. That’s roughly two percentage points higher than many discount rates on the market.

When the Bank of Canada’s posted rate starts climbing, some home buyers will be “stress tested” at a higher rate. Joining the homeowner’s club will have a higher barrier of entry.

Even before the rate hike, the mortgage market was changing. In early July, Royal Bank of Canada raised rates by 0.2 of a percentage point for some of its fixed-rate mortgages as bond yields moved higher. Other major banks followed with their own rate increases.

The outlook

Financial markets at mid-year expected the Bank of Canada to increase the overnight rate by a total 0.5 of a percentage point in 2017, which suggests one more increase of 0.25 of a point before year’s end. This would hypothetically take the prime rate at major lenders to 3.2 per cent from 2.7 per cent before the latest rate hike. Increases in the cost of fixed-rate mortgages will depend on how high rates for federal government bonds climb.

How can the Larose Team help?

Let us connect you with our preferred lending partners to review any financial questions or concerns. Based on your real estate needs, we can discuss how this increase may affect you as a homeowner looking to buy or sell. Contact us today 905.278.7355

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SOURCE: The Globe and Mail -  http://ow.ly/xJZ530dHk9Y


Canada Day Parade

04 July 2017
Larose Team

The Canada Day Parade in Port Credit had a huge turn out! We were thrilled to be a part of it and to celebrate Canada's 150th with the Mississauga community. The energy among the crowd was nothing short of amazing - a collective patriotic pride, proud to call Canada our home! Here are some of the highlights from the day.


Happy 150th Birthday Canada!

29 June 2017
Larose Team

Canada's 150th Birthday is just days away, and this year the Larose Team is taking part in the celebration by walking in the parade! The Team will be handing out mini flags along the route to those empty handed! We're thrilled to be a part of the big day and to be celebrating with the community. Beginning promptly at 11am this Saturday, the parade will begin at Stavebank and down Lakeshore to Seneca Ave (See map route below). The festivities continue all weekend in Port Credit at various locations, including the always amazing fireworks in Memorial Park. 

We look forward to the day and sharing with you some images & videos of the highlights!

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For a full list of all the Canada Day festivities, visit: http://paintthetownred.ca/


Featured Property - 1565 Stavebank Rd

16 June 2017
Larose Team

Our home of the week is a spectacular 6000+ Sq Ft estate home on a one acre in prime West Mineola!

This private contemporary custom-built home features hardwood flooring, two-storey vaulted ceilings, 6 bedrooms, 7 baths, a finished lower level with a gym, in-law nanny suite, games room, and sauna. Enjoy summer night in the private backyard with award-winning inground pool, hot tub and custom deck overlooking the property. For a private showing contact Kevin today! 

Be sure to check out our amazing aerial video of the property above!


Active Listings Increase in May

09 June 2017
Larose Team

TORONTO, June 5, 2017 -- Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 10,196 sales through TREB’s MLS® System in May 2017 – down by 20.3 per cent compared to 12,790 sales reported in May 2016.  Sales of detached homes were down by 26.3 per cent.  Sales of condominium apartments were down by 6.4 per cent.

The supply of listings was up strongly over the same period.  Active listings – the number of properties available for sale – at the end of May were up by 42.9 per cent compared to the record low a year earlier.  The number increased considerably for low-rise home types including detached and semi-detached houses and townhouses.  Active listings for condominium apartments were down compared to May 2016.

“Home buyers definitely benefitted from a better supplied market in May, both in comparison to the same time last year and to the first four months of 2017.  However, even with the robust increase in active listings, inventory levels remain low.  At the end of May, we had less than two months of inventory.  This is why we continued to see very strong annual rates of price growth, albeit lower than the peak growth rates earlier this year,” said Mr. Cerqua.

Selling prices continued to increase strongly in May compared to the same month in 2016.  The MLS® HPI Composite Benchmark price was up by 29 per cent year-over-year.  The average selling price for all home types combined for the TREB Market Area as a whole was up by 14.9 per cent to $863,910.  Year-over-year price increases were greater for condominium apartments compared to low-rise home types.  This likely reflects the fact that the low-rise market segments benefitted most from the increase in listings.

“The actual, or normalized, effect of the Ontario Fair Housing Plan remains to be seen.  In the past, some housing policy changes have initially led to an overreaction on the part of homeowners and buyers, which later balanced out.  On the listings front, the increase in active listings suggests that homeowners, after a protracted delay, are starting to react to the strong price growth we’ve experienced over the past year by listing their home for sale to take advantage of these equity gains,” said Jason Mercer, TREB’s Director of Market Analysis.

Source: http://trebhome.com/


Featured Property - 1171 Sienna St

02 June 2017
Larose Team

Our home of the week is one our newest listings, 1171 Sienna Street in Lorne Park's Watercolours community. This immaculate, well-designed home on a 57 x 129 ft. landscaped lot, showcases an abundance of windows, elegant finishes, and all the luxuries of a new build. Enjoy recent updates including newer hardwood flooring, an open concept living space, a gourmet eat-in kitchen with a breakfast area, a spacious master bedroom with a 5 piece ensuite and a grand backyard with multiple outdoor entertaining areas including lounges, a pavilion, and a hot tub. This is an idyllic retreat for friends and loved ones.

Enjoy all of Lorne Park’s amenities nearby, including schools, trails, and the lakeshore just moments away. 

Book your private showing today, contact Kevin at 905.278.7355


Bank of Canada Holds Interest Rate

26 May 2017
Larose Team

The Bank of Canada is sticking with its trendsetting interest rate of 0.5 per cent, saying uncertainties continue to overshadow the economy's stronger-than-expected start to the year.

In explaining its decision Wednesday to hold the rate, the central bank once again highlighted weak wage growth and the softening rate for underlying inflation as examples the economy still has room for improvement.

The bank's scheduled rate announcement comes after it raised its 2017 growth projection last month following a surprisingly healthy start to the year in areas such as employment, consumer spending and the housing markets. In Wednesday's statement, the bank added better business investment numbers to the list.

"Recent economic data have been encouraging,'' the bank said.

"Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions.''

The bank's statement, however, also predicted that the ``very strong growth'' over the first three months of the year will be followed by some moderation in the second quarter, even though at the same time it expects the U.S. economy to rebound.

Analysts had widely predicted governor Stephen Poloz to keep the rate locked at its very low level of 0.5 per cent, as significant unknowns underlined by the bank in the past continue to swirl around the U.S. agenda on trade and taxation.

"The uncertainties outlined in the April (monetary policy report) continue to cloud the global and Canadian outlooks,'' said the bank, without making any specific mentions this time about the potential policy path of Canada's largest trading partner.

With no monetary policy report released Wednesday, observers will scrutinize the commentary in the bank's one-page statement for clues about its thinking on the trajectory of the economy.

The bank's statement also said while recent government policy measures on real estate have contributed to more sustainable outlooks for household debt, the rules have yet to have a substantial cooling effect on hot housing markets.

On core inflation, the bank noted that recent readings for its three measures, which reduce the influence of some more volatile consumer items like gasoline, have stayed below its ideal target of two per cent. That signals the entire economy has yet to catch up to the recent momentum.

Source: http://www.repmag.ca/

Top 5 questions you should ask a moving company

19 May 2017
Larose Team

Finding a reliable mover can be daunting, but knowing the right questions to ask will help you through the process. We reached out to one of our preferred movers, Rawlinson Moving & Storage Ltd, to find out what top 5 questions you should be asking, key answers to their long term success, and why we refer them to our clients. 

  1. Ask friends, neighbours and co-workers for personal recommendations and warnings.

  2. Talk to the mover: Spend some time talking with your prospective movers. It’s a good sign if they take the time to understand your moving needs.

  3. Hourly rates: Be careful with low hourly rates. A professional moving company ultimately saves you money. The lowest hourly rate for a local move is not necessarily the final price.

  4. Claims: Occasionally, no matter how careful a moving company is, an item may be damaged. It’s important to review their claims policy.

  5. Deposit: Professional companies don’t require a significant deposit before moving. Ask about the upfront costs.

First Time Buyer? The Larose Team can help!

16 May 2017
Larose Team

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The prospect of buying your first home can be exciting and overwhelming at the same time. Your purchase could well be the biggest financial investment of your life as well as one of the most rewarding. That’s why it’s important to connect with an expert, the Larose Team can help! Read the testimonial of our most recent first time buyer clients Eric & Diandra, and their experience with the Larose Team.

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Having Chris Hillier on our side throughout our home buying adventure was made into a positive experience by his friendly nature and expertise. My fiancé and I were first time home buyers looking for a condo and Chris did everything necessary to cater to our needs. One major factor that stood out was how kind and genuine Chris was to us. Throughout the whole process it felt as if Chris was our friend and not just our realtor. He was always available to answer any questions that we had at any time. Chris was able to turn our first home buying experience from something that was frightening into something that was extremely enjoyable. We would like to thank Chris for his hard work and dedication to our needs and would never hesitate to work with him again in the future!

- Eric & Diandra