The Bank of Canada may signal today it plans early and slow increases in its key interest rate, two days after ending a “conditional commitment” to keep it at a record low 0.25 percent until July.
Governor Mark Carney may raise the rate to 0.5 percent at the next announcement June 1 and to 1.25 percent in October, said Meny Grauman, a senior economist at Canadian Imperial Bank of Commerce in Toronto.
“The Canadian economic comeback definitely is on track,” Grauman said. “The issue is whether we can sustain these levels” of growth, he said.
The policy report today will expand on Tuesday’s statement by giving a quarterly breakdown of its economic growth and inflation forecasts. Consumer prices will be “slightly higher” than the bank’s 2 percent target over the next year, and inflation excluding eight volatile items will “remain near 2 percent” through 2012, the rate announcement said.
The bank will probably also update its assumption for the Canadian dollar, after saying in its January report the currency would average 96 U.S. cents through 2011. The currency is now trading at around parity with the U.S. dollar, and the bank repeated this week the currency and a low volume of U.S. orders will be a drag on growth.Slower rate increases will give the bank more time to judge the recovery, said Thorsten Koeppl, assistant economics professor at Queen’s University in Kingston, Ontario.
“Big increases that are surprises usually have disruptive effects,” he said. He predicts quarter-point rate increases in June and July.
“I don’t think the bank has to raise in June but it has to raise fairly quickly once the cycle starts,” said Angelo Melino, a University of Toronto economics professor and former central bank adviser. “Anything below 2 percent smacks of emergency.”
Mark Chandler, head of Canadian fixed-income and currency strategy at Royal Bank of Canada in Toronto, told the same conference his forecast for the “terminal” level of the Bank of Canada’s policy rate is 3.5 percent by the end of next year.
www.HAMILTONHOMESINFO.ca
Thursday, April 22, 2010
Wednesday, April 21, 2010
NEW RECORS FOR LISTINGS IN HAMILTON-BURLINGTON
The Greater Hamilton-Burlington area resale market reported a total of 1436 units sold in March, an increase of 38.2 per cent over March of last year, according to the Multiple Listing Services® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB).
When compared to February of this year, total unit sales were 29.4 per cent higher in March, 2010.
“March was just an amazing month for numbers of listings and sales,” said RAHB President Joe Ferrante. “We set a new record for the number of listings taken in a month, ever.”
Residential properties sold during March totalled 1365 which included 1102 freehold properties and 263 condominiums. Commercial sales for March, including industrial, farm, vacant land and business, totalled 71 units.
The average price of freehold residential properties sold in the month of March was $335,633, an increase of 20.7 per cent over the same month last year and an increase of just over one per cent over last month.
In the condominium market, the average price of condominiums in March was $220,092, an increase of six per cent over March, 2009 but a decrease of just under nine per cent from last month. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.
March’s total average residential sales price increased 19.2 per cent over the same month in 2009.
The total number of units listed for sale during March was 2270, which is 28.5 per cent higher than were listed in the same month in 2009.
Total unit sales for the first three months of 2010 are reported at 45.7% higher than the same period in 2009. New units listed are 21.5 per cent higher when compared to the first quarter of last year.
When compared to February of this year, total unit sales were 29.4 per cent higher in March, 2010.
“March was just an amazing month for numbers of listings and sales,” said RAHB President Joe Ferrante. “We set a new record for the number of listings taken in a month, ever.”
Residential properties sold during March totalled 1365 which included 1102 freehold properties and 263 condominiums. Commercial sales for March, including industrial, farm, vacant land and business, totalled 71 units.
The average price of freehold residential properties sold in the month of March was $335,633, an increase of 20.7 per cent over the same month last year and an increase of just over one per cent over last month.
In the condominium market, the average price of condominiums in March was $220,092, an increase of six per cent over March, 2009 but a decrease of just under nine per cent from last month. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.
March’s total average residential sales price increased 19.2 per cent over the same month in 2009.
The total number of units listed for sale during March was 2270, which is 28.5 per cent higher than were listed in the same month in 2009.
Total unit sales for the first three months of 2010 are reported at 45.7% higher than the same period in 2009. New units listed are 21.5 per cent higher when compared to the first quarter of last year.
What is so 'critical' about the status certificate when you buy a condominium in Ontario?
What is so 'critical' about the status certificate when you buy a condominium in Ontario?
When I am representing the seller, I tell them the status certificate is critical.
What I mean by " critical " is that we have nearly zero control over the content of the status certificate and how the buyers lawyer interprets the information contained within it.
If there are any issues with the financial status or operation of the condo (current or future) the buyer has the option to back out of the sale.
Most often the buyer and the buyer's lawyer is fine with the status certificate, but there are many issues that could arise. This is why I say it's the critical condition. Financing and inspection conditions are quite straightforward.
I'm not trying to scare you, these are just the facts.
Most Status certificates are fine, but once I receive the status certificate, I will copy the first 5 to 7 pages, these are the most important and specific pages to your particular unit (the balance of the status certificate is about 50 pages of budgets and legal information about the condo complex, and nothing particular about your unit) and I like to have a copy of these pages in the event of further discussion with the other agent or solicitor, more as a reference.
Typically, the status certificate for a condo should be fine as long as there are no new issues that you the seller does not know about.
I hope this helps,
Jimmy
When I am representing the seller, I tell them the status certificate is critical.
What I mean by " critical " is that we have nearly zero control over the content of the status certificate and how the buyers lawyer interprets the information contained within it.
If there are any issues with the financial status or operation of the condo (current or future) the buyer has the option to back out of the sale.
Most often the buyer and the buyer's lawyer is fine with the status certificate, but there are many issues that could arise. This is why I say it's the critical condition. Financing and inspection conditions are quite straightforward.
I'm not trying to scare you, these are just the facts.
Most Status certificates are fine, but once I receive the status certificate, I will copy the first 5 to 7 pages, these are the most important and specific pages to your particular unit (the balance of the status certificate is about 50 pages of budgets and legal information about the condo complex, and nothing particular about your unit) and I like to have a copy of these pages in the event of further discussion with the other agent or solicitor, more as a reference.
Typically, the status certificate for a condo should be fine as long as there are no new issues that you the seller does not know about.
I hope this helps,
Jimmy
Should you purchase an extended warranty on appliances or items that are located in your investment property ?
Should you purchase an extended warranty on appliances or items that are
located in your investment property.
This is a question I receive from
people who have investment properties.
You may feel more conformable with warranties in place, especially when it's
a tenant using the items and not you. Tenants tend to be harder on
appliances and tend to not maintain systems the way you the owner would, and
appliances may break down more often or quicker than they normally would.
Thus extended warranties may pay off in the long run.
Many of my clients with rental properties purchase extended warranties on
their appliances and get furnace and air conditioner regular maintenance
packages to keep them in good running order.
For my personal items that I use and enjoy, our appliances, furnace and air
conditioners, computers, electronics and my vehicles, I never purchase an
extended warranty. My opinion is to never purchase an extended warranty on
anything, anytime ever. It's really up to you and your comfort level.
A friend of mine told me that the amount of "money
that you save" by not spending any money on extended warranties over a 10,
20 or 30 year period is far greater than the amount you may end up spending
on the occasional repair of an item once it's past it's warranty period. If
an item does not break during it's warranty period then it's more likely
'not to break' once it's past the period.
If it does break or fail after the warranty has expired the cost of repair is usually far less than youwould have paid for the extended warranty,
OR you will replace the item with
a new one since the cost has come down so much OR that it may be time to
purchase a new one and upgrade or update to current technology. This is
especially true with electronics. Of course, this is only my personal
opinion, but many will argue the other way.
I wish you all the best!
Jimmy
located in your investment property.
This is a question I receive from
people who have investment properties.
You may feel more conformable with warranties in place, especially when it's
a tenant using the items and not you. Tenants tend to be harder on
appliances and tend to not maintain systems the way you the owner would, and
appliances may break down more often or quicker than they normally would.
Thus extended warranties may pay off in the long run.
Many of my clients with rental properties purchase extended warranties on
their appliances and get furnace and air conditioner regular maintenance
packages to keep them in good running order.
For my personal items that I use and enjoy, our appliances, furnace and air
conditioners, computers, electronics and my vehicles, I never purchase an
extended warranty. My opinion is to never purchase an extended warranty on
anything, anytime ever. It's really up to you and your comfort level.
A friend of mine told me that the amount of "money
that you save" by not spending any money on extended warranties over a 10,
20 or 30 year period is far greater than the amount you may end up spending
on the occasional repair of an item once it's past it's warranty period. If
an item does not break during it's warranty period then it's more likely
'not to break' once it's past the period.
If it does break or fail after the warranty has expired the cost of repair is usually far less than youwould have paid for the extended warranty,
OR you will replace the item with
a new one since the cost has come down so much OR that it may be time to
purchase a new one and upgrade or update to current technology. This is
especially true with electronics. Of course, this is only my personal
opinion, but many will argue the other way.
I wish you all the best!
Jimmy
5 year mortgage interest rates on the rise again
Royal Bank and Scotia bank have increased their 5 year fixed mortgage
interest rate by 1.4% - the slow but steady rise in rates is in progress,
within a few months you can expect posted 5 year rates over 6%
The table below shows what is posted and what is attainable in the
marketplace, OAC of course! :-)
All the best,
Jimmy
Term 6 Month 1 Year 2 Year 3 Year 4 Year 5 Year 7 Year 10
Year Variable
Rate Prime
Rate
Posted Rates* 5.10% 4.10% 4.25% 5.05% 5.25% 5.85% 6.80%
6.90%
Best Rates* 4.59% 2.65% 2.95% 3.69% 4.09% 4.39% 4.95%
5.19% 1.85% 2.25%
interest rate by 1.4% - the slow but steady rise in rates is in progress,
within a few months you can expect posted 5 year rates over 6%
The table below shows what is posted and what is attainable in the
marketplace, OAC of course! :-)
All the best,
Jimmy
Term 6 Month 1 Year 2 Year 3 Year 4 Year 5 Year 7 Year 10
Year Variable
Rate Prime
Rate
Posted Rates* 5.10% 4.10% 4.25% 5.05% 5.25% 5.85% 6.80%
6.90%
Best Rates* 4.59% 2.65% 2.95% 3.69% 4.09% 4.39% 4.95%
5.19% 1.85% 2.25%
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