Housing starts are expected to end 2010 at 1,775 units, with 1,900 starts forecast for 2011. The resale or MLS®1 market will post 3,650 sales by the end of this year and reach the 3,600 level in 2011. The average MLS® house price is expected to end 2010 at $245,000 compared to $218,862 in 2009 and increase to $255,000 in 2011. “Despite the recent global economic uncertainty, strong fundamentals will continue to support demand for housing throughout the remainder of 2010 and in 2011,” said Chris Janes, senior market analyst with CMHC in Newfoundland and Labrador. “Overall, the positive outlook for the St. John’s area housing market will be reinforced by favourable trends in demographic and economic fundamentals, as well as on-going economic momentum fuelled by a lengthy list of major capital projects,” added Janes.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

The Government of Canada announced today an investment of almost $2.3 million as part of the year one funding through Canada’s Economic Action Plan to improve housing conditions for the James Smith Cree Nation, Peter Chapman Band and Chakastaypasin Band communities.

The Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC) and the Honourable Chuck Strahl, Minister of Indian Affairs and Northern Development (INAC), Federal Interlocutor for Metis and Non-Status Indians, made the announcement today.

“Our Government’s Economic Action Plan is creating jobs, stimulating the local economy and improving housing conditions for First Nation communities in Saskatchewan,” said Minister Finley.

Through Canada’s Economic Action Plan, the Government of Canada has committed $400 million over the next two years to help First Nation communities build needed new housing, repair and remediate existing non-profit housing for their members, and complement housing programs offered by CMHC and INAC. This investment will also provide an economic stimulus for many First Nations and surrounding areas by creating jobs.

“The Government of Canada recognizes that quality housing is a fundamental building block for every First Nation family and community,” said Minister Strahl. “Through Canada’s Economic Action Plan, our government invested $400 million over two years dedicated to new and renovated social housing projects, which includes $60 million for First Nations in Saskatchewan.”

Through Canada’s Economic Action Plan, some $60 million in federal investments will be made available to First Nations in Saskatchewan to address immediate housing needs.

CMHC will allocate almost $550,000 to retrofit 20 existing social housing units and more than $1.4 million in subsidy associated with the construction of eight new social housing units. In addition, INAC will contribute $386,000 for major renovations to 15 housing units. This funding will go a long way to help improve housing conditions in these First Nation communities.

On behalf of the combined 2800 band members, the three Chiefs wish to acknowledge the Canadian Economic Action Plan’s initiative to stimulate the Canadian Economy by investing millions of dollars in First Nation communities. These investments in First Nation housing and infrastructure allow for an increased standard of living and the continued delivery of essential services to our ever-increasing populations. Furthermore, the members wish to acknowledge the hard work, cooperation, and organizational efforts of the Canadian Government, the Canada Housing and Mortgage Corporation and Indian and Northern Affairs Canada in the implementation of the CEAP funding.

“CMHC is pleased to support the many municipalities, home builders and non-profit housing providers working to develop local housing solutions that will benefit the economy and revitalize communities across the country,” said Douglas Stewart, Vice-President, Policy and Planning, CMHC.

In operation since 1990, ACT provides grants of up to $5,000 to teams of municipalities and private or non-profit home builders who promote the improvement of planning and building regulations in their communities to make housing more affordable and responsive to local needs. ACT also offers a wealth of proven best practices and lessons learned so that communities can benefit from the innovations of others.

ACT is funded by CMHC and administered and delivered by the Federation of Canadian Municipalities (FCM), with the participation of the Canadian Home Builders’ Association (CHBA) and the Canadian Housing and Renewal Association (CHRA).

“ACT assists municipalities, home builders and housing groups to work together on regulatory reforms that support innovation. ACT has a significant impact leading to the creation of new affordable housing options,” said FCM President Basil Stewart.

“By sharing information about how housing providers, builders and municipalities implemented changes, other local teams across the country can benefit when adopting those changes in their own communities,” added CHRA President David Eddy.

“ACT grants have helped home builders to work with municipalities to streamline approvals and eliminate hurdles in planning and building regulations in order to improve housing affordability and choice,” said CHBA President Gary Friend.

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant, healthy communities and cities across the country.

Buyers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86% are of the view that the level of total housing and other monthly payments should generally not exceed 40% of gross household income, which is in line with generally accepted mortgage lending practices.

Recent buyers are prudent mortgage managers.
According to the survey, 75% of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20% of recent purchasers report having made a lump sum payment to their mortgage.

“The survey results are encouraging and provide insightful information, indicating that Canadians feel positive about Canada’s housing market. As well,  Canada’s Economic Action Plan’s home purchase and renovation incentives, and CMHC’s recent outreach campaign to help Canadians who may be facing difficulties with their mortgage payment, are clear actions to support homeowners and the housing market.” said Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC). “

Canadian mortgage consumers recognize the benefits associated with mortgage loan insurance (MLI). According to the survey, 80% of recent buyers believe that MLI provides an important benefit to the financial system. Similar to CMHC’s last Mortgage Consumer Survey, the 2009 survey also indicates that Canadians continue to be well served by the mortgage industry, with 77% of recent mortgage purchasers expressing satisfaction with the service received from their lender or broker.

http://montrealrealestateblog.com/canadian-home-buyers-savvy-and-optimistic/

reported by Moishe Alexander, CFC CEO