Experienced and Savvy Investors Buy in December to March Winter Months

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Investors Buy in December to March Winter Months

Experienced and Savvy Investors Buy in December to March Winter Months

Why do a Large Number of Experienced and Savvy Investors Buy in December to March Winter Months?

For a few personal reasons, some people have no time limit (expiration of apartment lease, etc.)and so they really wait until they find something they love to do before purchasing like marrying, which can come at any time, including the snowy winter months as well.

Also, if a property has not sold over the busier season (spring and summer), owners as well as realtors tend to drop the asking price a little to attract more investors to the property. So sometimes, you can get a better deal on a property in the winter months as opposed to the months where the most investors are searching the housing market. Investors think that there is a possibility of better deal to be had….but, many times it is not so….you need right investor agent who can navigate thru this surfing and searching.
There is one good reason is that there are fewer sales and fewer investors in these months so some investors see that as a great time to get a deal. Some houses do not show up in the realtor search as it is in the batches on system for group of years like under 5yrs, under 10 years & so on, so those comes up as soon as the new year starts, also the possible search criteria also changed altogether.

If a seller has placed a conditional offer on a new home and theirs is still not sold by the winter, you may also have an easier time negotiating as they have deadlines to sell their home, so the Investor have an opportunity.

Each selling and purchasing decision is based on a variety of different motives. It’s often case by case and so does just like credit ratings its all depends on individuals.

Don’t be fooled though, some of the statistics I have seen have shown that December is also a good time to sell, and recent years you can verify mls.ca stats, winter months are not bad producing months as well, Because fewer inventories on the market mean less competition, and if investor is in need and do not want to wait despite realtor try to wait for new match property comes up in market. Sometimes good houses do not sell because the competition is fierce and even though they may be priced and war of price so hot, to-gather competitively, they fail to sell because if excess inventory levels. Over major portion of the houses listed in GTA last year in December sold. This made it the number: one month to sell if you want to have an edge on the market inventory if you think and plan properly and willing to take risk with good experience agent and with lots of ice over the head.

Some of my clients save up and buy this time of year. Most investors do not want to be bothered over the Christmas season but investors know that offers at this time of year are scarce at best. This is the time of year when those of us agents that represent investor investors are the busiest. Feel free to contact me if you wish to explore the investor market, there are a lot of great deals out there right now that my clients are snapping up! Would you like to wait or go depends on your choice.

Another good reason is that in winter months only serious sellers remain in the market just like serious investors and price the property accordingly well to sell and ready to make a deal before spring market competition starts. Negotiations take place well when both parties are motivated. An experienced Realtor can get you a great deal in winter.

Always hire the proper agent: www.vijaygandhi.com and save you a lot…

Canada Housing Starts Drop, Mortgage Sector to Slow

New home construction fell to a seasonally adjusted annual rate of 167,900 units from a downwardly revised 185,000 units in September, Canada Mortgage and Housing Corp said on Monday.

The number missed analyst forecasts for 183,000 starts. September starts were previously reported at 186,400 units on an annualized basis.

It was the fifth monthly decline in the six months since new home construction came close to a two-year high in April, and the lowest level of starts since September 2009.

“Canadian housing demand has cooled significantly this year, and supply now appears to be following,” said Robert Kavcic, economist at BMO Capital Markets.

Once a major source of economic growth for much of the past decade, the Canadian housing sector has begun to slow after the recession, as expected, with recent data showing that home sales have cooled, construction has moderated and prices are showing signs of stabilizing.

The heated activity in all corners of the housing market was a major reason that residential mortgage credit expanded rapidly to top C$1 trillion as of August 2010, a separate report showed on Monday.

The gain marked a 7.6 percent rise from the year before, the Canadian Association of Accredited Mortgage Professionals (CAAMP) said of its annual mortgage survey. Data was collected from various sources, including an online survey of 2,005 Canadians. More than one-half of the sample were home owners with mortgages.

CAAMP described the growth rate in the past year as “quite strong” and said coming years should show a slower, but historically solid, growth rate as well, even with buying activity and housing construction slowing.

It estimated the amount of outstanding residential mortgage credit will rise by about 7 percent this year to C$1.028 trillion, with growth easing to a 6.5 percent pace in 2011, and close to 6 percent in 2012. That compares to average growth rates of 10.7 percent a year between 2004 and 2008, when the housing market was booming.

The report also showed Canadian homeowners are comfortable with their mortgage debt and believe they can handle an increase in interest rates.

SINGLE-FAMILY HOMES

Starts of closely watched urban single-family homes declined 8 percent in October to 57,700 units, while urban multiples, such as condos, fell 15 percent to 84,700 units.

CMHC said the moderation in monthly housing starts from “relatively high” levels earlier in the year was consistent with its projection of 184,900 units this year. It estimates about 175,000 units next year.

Regionally, starts were lower by a province-leading 24.5 percent in Ontario, followed by a 16.9 percent drop in the Prairie region. Starts in British Columbia fell 9.1 percent and were down 2.6 percent in Quebec. Atlantic Canada was the only region to report an increase in new home construction in the month, up 32.9 percent.

Rural starts were estimated at a seasonally adjusted annual rate of 25,500 units in October.

Source: http://ca.news.yahoo.com/s/reuters/101108/business/cbusiness_us_economy_housing_97

Bank hikes interest rates but sees sluggish economic

Bank hikes interest rates but sees sluggish economic

The Bank of Canada today raised its trend-setting interest rate for the third consecutive time—to 1 per cent—but signaled this may be the last increase until the central bank sees signs of a durable recovery. 

“Any further reduction in monetary policy stimulus would need to be carefully considered in light of the unusual uncertainty surrounding the outlook,” bank governor Mark Carney wrote in a brief explanation of the decision. 

The move means higher interest costs for some mortgage holders and consumer and business borrowers. 

The bank said “economic activity in Canada was slightly softer in the second quarter” than it had expected and the economic recovery in Canada will be “slightly more gradual” than expected a few months ago. This largely reflects “a weaker profile for U.S. activity,” Carney said. 

The Canadian economy expanded at a robust 5.8 per cent pace (on an annualized basis) in the January-through-March period but slipped to 2 per cent from April to June. 

“The global economic recovery is proceeding but remains uneven, balancing strong activity in emerging market economies with weak growth in some advanced economies,” the bank observed. 

“In the United States, the recovery in private demand is being held back by high unemployment and recent indicators suggest a more muted recovery in the near term.” 

Still, looking ahead in Canada, the bank said “consumption growth is expected to remain solid and business investment to rise strongly” as a result of accommodative borrowing conditions. 

In early 2009, Carney took the unusual step of announcing that he would hold the bank’s key overnight rate at 0.25 per cent for a year to help combat the recession. But, with the Canadian economy on the mend, he has been gradually raising the rate in recent months. 

However, many analysts expect this to be the last upward move in interest rates by the bank for some time, perhaps until next year, unless business conditions rapidly improve. 

In fact, economists were sharply divided over whether the bank, faced with a sputtering recovery in the vital United States market, would hike rates again today or take a breather to assess the economic trends. 

But Carney pointed out today that, although monetary policy in Canada has tightened since April, financial conditions remain “exceptionally stimulative.” 

“Since the start of this year, the (central) bank’s outlook for economic growth in 2011 has been too rosy,” TD Bank economist Craig Alexander responded. 

Based on today’s decision, “the odds favour the Bank of Canada pausing for some time” before raising its key rate again, Alexander said. “TD Economics does not anticipate another tightening before March of next year.” 

http://www.thestar.com/business/article/857993–bank-hikes-interest-rates-but-sees-sluggish-economic-recovery
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The next scheduled date for announcing the overnight rate target is Oct.19.
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The info. Is intended as general information only and does not constitute legal advice. If you need legal advice, please speak to a lawyer.

If you have any questions/suggestion or require more information, please do not hesitate to contact me for buying or selling and also I will be happy to assist you negotiating your investment needs.

You can find the Residential/commercial/multiplexes/investment listings on webs sites as under

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Vijay Gandhi,
Sales Representative- REALTOR^®,
RE/MAX Dynasty Realty Inc. Brokerage*
C: 647. 267. 6338 (Direct-Leave message or text)
P: 416.335.4335 | 905.471-0002 (page me-Have me)
F: 905.471.7441
E: vtgandhi@yahoo.com , vgandhi@remax.net
W:  www.vijaygandhi.com , www.gtarealtyagent.com , www.icxforsale.com 

Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!

Canadian Housing Industry and employment

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and, Canadian, employment, Housing, Industry

Housing and employment

Canada has taken home its fair share of gold medals in 2010, even if we still can’t put together 11 guys on the field that can kick a football better than our other two NAFTA partners and make it through to the round of 16 at the World Cup.  Oh well, c’est la vie.  Off the podium though, this country has also stood head and shoulders above most of its G-20 peers when it comes to financial sector stability and economic resiliency.  I still firmly believe that the US remains one of the world’s most adaptable and resilient economies over the long term, but there is no denying the fact that Canada’s economy has weathered the recent recession better than most. And it has come out of that recession smelling a lot better, too.  Two particular areas come to mind where the fragrance has been much sweeter – housing and employment. 

“GO CANADA GO”

While some officials from the real estate arena have come out a little more pessimistic about second-half prospects lately, and recent sales and permits figures have witnessed a sharp decline from this year’s best levels, it’s hard to call this a ‘weak’ recovery for the residential sector.  Before the May slide, housing starts broke the 200,000 unit mark for the second time this year and, yes, much of the strength can be put down to pre-HST demand, but that doesn’t explain the initial move off of last April’s lows.  In that context, the sharp and disappointing drop in starts in May can be explained mainly by the fact that sales had been front-loaded because of the HST implementation in July (for Ontario and BC) and also the upward creep in mortgage rates during the spring. 

Looking forward, however, people are still going to buy homes despite the tax and there will be other more important drivers to affect demand.  Like employment.

The comparison of unemployment rates is even more striking.  Some of you might be thinking that a 7.9% rate is nothing to cheer about, especially when we were down at 6% a couple of years ago; but, it’s about a percent lower than the peak of just over a year ago.  Again, some perspective is needed here.  Take a look at the long-term chart for Canada’s unemployment rate.  Remember the 13% rate in 1982 and 12% in 1982. A distant memory indeed, but at the time it felt like hell. This folks is not hell.  And, if the absolute numbers don’t make you feel somewhat less panicky, how about another comparison with our neighbours to the south.  Until the third quarter of 2008, Canada had experienced a higher unemployment rate than the US since 1982.
 
Interestingly enough, the gap between our rate and the US reached its maximum back in 1993 at just under five percentage points.  I say this because it was at that time that Canada hit the fiscal wall.  Economic recession and fiscal mismanagement had pushed Canada to the brink of credit rating downgrades, similar to what is being felt in Europe.  The response was fiscal belt-tightening, which exacerbated Canada’s struggle to recover from the 1991 recession.  Yet, it was as the tough medicine was being administered that employment conditions begun to stabilize. Employment growth turned positive in the spring of 1993 and spent just over a year before hitting the 3% mark. By 1995, the unemployment rate had been knocked down to 9%

-Article is abstract from yahoo finance

(The comments contained on this site are for information purposes only and do not constitute legal advice.)

If you have any questions/suggestion or require more information, please do not hesitate to contact me and I will be happy to assist you.

Vijay Gandhi,
Sales Representative- REALTOR^®,
RE/MAX Dynasty Realty Inc. Brokerage*
C: 647. 267. 6338 (Direct-Leave message or text)
P: 416.335.4335 | 905.471-0002 (page me-Have me)
F: 905.471.7441
E: vtgandhi@yahoo.com , vgandhi@remax.net
W:  www.vijaygandhi.com , www.gtarealtyagent.com 

Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!