Posted: July 17, 2009 at 9:13 am | Tags: Alexander, Association, Average, canada, canadian funding corp, canadian funding corporation, CEO, CFC, Click, CREA, Estate, Housing Market, June, market, Moishe, moishe alexander, Real, steam
The Canadian housing market appears to be picking up steam, as prices climbed an average of 4.2% across Canada in June, according to the Canadian Real Estate Association (CREA). However, some areas are struggling. Click the arrows to find out which markets have been left behind as prices rise.
http://finance.sympatico.msn.ca/banking/mortgages/most-struggling-housing-markets.aspx
reviewed by Moishe Alexander, CFC CEO
Posted: July 9, 2009 at 1:00 pm | Tags: Alexander, canada, canadian funding corp, canadian funding corporation, Credit, deflation, fallout, home, industry, Insurance, interest, Life, loan, moishe alexander, News, Rate, Term, World, year
Times have changed drastically in the world of home loans because of recent happenings. What’s up next for us now? Is there any way to guess if the rates will continue to improve?
Tight conditions in the mortgage world should normally mean lower rates, since banks would have to lower rates in order to attract customers with good credit ratings. But it sems that banks are actually raising rates, in the hope that will improve their revenue.
Under other circumstances, this would seem like a bad choice since the usual route to increased earnings is to lower prices. This shortsightedness is not limited to the home loan industry; credit card companies are doubling and even tripling their rates in reacton to defaults on the part of customers in this depressed economic environment.
It used to be that when the economy slowed down, banks would lower their interest rates and this would give an incentive to borrowers. But with the lending industry in turmoil, it seems like none of the old rules count.
So what is the solution for a potential homebuyer with the right credit score to borrow? Wait for this phase to pass and for rates to come down or grab a loan now, while there is still some credit around, or wait for the fallout from the recession?
Not only is there a current, there are many who even believe there is a depression coming, which will surely lead to deflation. Normally, deflation will in turn lead to lower interest rates, so this indicates a wait and see attitude is the best to take right now.
Some lenders are still actively seeking borrowers. Many small lenders never had the capital to delve into the giant home loan programs that many of the larger banks did. In this case, being small was an advantage, since many of them were insulated from the problems now haunting most of the credit industry.
A second good argument for waiting is that home prices continue to plummet, with predictions of futher price cuts of as much as 35%, even after the 20 to 25% decreases already seen. The Case-Schiller study published in November of 2008 reported year on year decreases of 17% nationally, with 25% in some areas. If the scenario is set not only for decreased rates, but also for lower home prices, it would seem wise to wait until more of the credit crisis fallout can be judged.
http://www.classic-realestate.com/term-life-insurance-canada-the-news-in-the-interest-rate-world.html
reviewed by Moishe Alexander, CFC canadian funding corp CEO
Posted: July 9, 2009 at 9:21 am | Tags: Alexander, Board, Calgary, canadian funding corp, canadian funding corporation, crisis, Doug Porter, downturn, economist, Edmonton, Housing Market, June, moishe alexander, month, Ontario, ottawa, price, province, Real, record, sale, talk, Toronto, Vancouver, winter, year
TORONTO – Despite all the talk of a housing downturn and economic crisis in Ontario, the province’s two biggest cities both saw record housing resales last month for the month of June.
The Toronto Real Estate Board said Monday there were 10,955 sales in the Greater Toronto Area in June, a 27% increase from the 8,600 homes sold a year ago. It was the best June for sales since the board started tracking the numbers in the mid 1960s.
In Ottawa, housing sales jumped 12.5% in June to 1,895, also a new record for the month.
The average sale price in the GTA last month $403,972, up 2% from a year earlier. In Ottawa, the average sale price rose 3% annually to $306,925.
“I think the next stage” might be price pressure, said Doug Porter, deputy chief economist at BMO Capital Markets. “The moderation we have seen in prices may not last long if this kind of sales and listing balance remains in place.”
Porter said the mad scramble to buy a house is playing out across the country, as consumers wade back into the market tempted by interest rates the lowest they’ve been in 50 years.
Five-year fixed rate mortgages were as low as 3.75% last month, though they’ve nudged back up to about 4.5% since.
“Vancouver sales were up about 76% from a year ago, the second best June ever for them. Calgary sales were up 27%, and Edmonton sales were up 38%,” said the economist. “A lot of people emerged from their foxholes over the winter and have been brought in by low mortgage rates or a belief the economy is going to improve.
“There was some pent-up demand, things almost froze over solid over the winter.”
http://ontariomortgageinfo.blogspot.com/2009/07/housing-sales-soar-in-ontarios-biggest.html
brought by Moishe Alexander, CFC canadian funding corp CEO
