Housing Starts to Moderate in 2009 – CMHC

The Canadian Mortgage and Housing Corporation (CMHC) released a report yesterday stating that new home construction will moderate from historically high levels, to reach just under 178,000 units in 2009.

“High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year,” said Bob Dugan, Chief Economist for CMHC. “Housing starts will moderate to 212,200 units in 2008 and 177,975 units in 2009.”

Existing home sales, as measured by the Multiple Listing Service (MLS^®)¹, which reached a record level of 523,701 sales in 2007, will moderate in 2008 to 452,225 units. In 2009, MLS^® sales will move to 433,375 units. Despite a moderation in MLS^® sales, demand for existing homes will remain strong by historical standards. With housing markets having become balanced across Canada, the rate of growth in the average MLS^® price will moderate. Average prices will reach $306,500 in 2008 and $306,700 in 2009.

Toronto places 10th in global cities rankings

The influential international relations magazine Foreign Policy teamed up with A.T. Kearney and The Chicago Council on Global Affairs to create the Global Cities Index, a uniquely comprehensive ranking of the ways in which cities are integrating with the rest of the world. Toronto was ranked as the world’s 10th most global city, as well as fourth best for cultural experiences.

New York emerged as the No. 1 global city this year, followed by London, Paris, and Tokyo. The Big Apple beat out other global powerhouses largely on the back of its financial markets, through the networks of its multinationals, and by the strength of its diverse creative class. Overall runner-up London won the cultural dimension by a mile, with Paris and New York trailing far behind.

Toronto, the only Canadian city on a the list of 60 urban centres, was noted as “lifestyle centre”, along with Los Angeles, calling them “laid-back cities that enjoy a high quality of life and focus on having fun. They attract worldly people and offer cultural experiences to spare.” Toronto was placed behind only New York, London, and Paris in the cultural category, which was based on the quantity and quality of the city’s major sporting events, international travellers, restaurants, museums and performing arts.

See below for the complete rankings

The ins and outs of a reverse mortgage

(NC)-For many Canadians, the thought of retirement is an exciting one, conjuring up images of travel, days spent at the cottage and visits with grandchildren. Unfortunately, some seniors are caught off guard by the expenses associated with retirement and a pension might not always be enough to make ends meet.

This is why more seniors are turning to reverse mortgages to increase their cash flow and enjoy a more satisfying retirement. A reverse mortgage is a special type of loan that converts the equity built up in your home into cash. For more than 20 years, CHIP Home Income Plan has been providing a simple and sensible solution to help increase the financial stability of Canadians 60 years of age or older.

But when it comes time to investigate the option of a reverse mortgage for yourself, or a loved one, be sure to consult with a financial planner and develop a clear plan to ensure you get the most out of your reverse mortgage.

Here are some common questions to consider:

How important is home ownership to you?

Bank of Canada Cuts Interest Rates

The Bank of Canada made a small quarter-point cut to its key interest rate today in an effort to stimulate the economy and ward off what the bank has labelled a global recession.

The cut to 2.25 percent Tuesday follows an unscheduled half-point reduction Oct. 8 in co-operation with other major central banks in an effort to ease lending and boost the global economy. The Bank of Canada is the first central bank to make a further cut since that coordinated move.

The Canadian Real Estate Market

Review of recent news stories relating to the Canadian housing market.

Things are not looking great but in comparison to our neighbours down South we are not in terrible shape.

Globe & Mail – Property: Resale Housing Market Calms Down – Oct 15th

Reuters – Canada Average House Price Falls in September – Oct 15th

Toronto Star – Fall in House Prices Broadens, Deepens – Oct 16th

National Post – Our House-Price Risk Small than in U.S. – Oct 17th

Daily Commercial News – Canadian housing starts remain elevated in September 2008 – Oct 20th

visit: KeyCanada.ca

CMHC to Buy $7-Billion of Mortgages this Thursday

Canada Mortgage and Housing Corp announced today that they are planning to buy up to $7-billion of mortgages from Canadian lenders on Oct. 23.

This will be the second round of purchases under the government’s new $25-billion program, designed to help banks and other lenders with financing that will make it easier for them to lend to consumers.

Banks have welcomed the new measure, and many are calling for it to be increased. The government is using its ability to borrow cheaply to provide the banks with cheaper financing for their mortgage portfolios than they could raise themselves.

Source: Globe & Mail
Also see: CMHC

Seniors cash in on buyers market

(NC)-After a decade-long boom in housing prices, Canadians are finally facing the realities of a buyer’s market. With real estate prices stabilizing and houses spending more time on the market, is the home no longer the potential source of wealth for seniors who’ve counted on it to support their retirement plans?

Seniors wishing to tap into their home equity in order to enhance their income, still have some attractive options. Many Canadians aged 60 and older are turning to the CHIP Home Income Plan as a simple, safe way to access the home equity in their home while the real estate market stabilizes.

KeyCanada.ca Launches Local Kingston Real Estate Blog

 

 

 

 

 

KeyCanada.ca has launched a local real estate blog in Kingston, Ontario – KingstonRealEstateNews.com .

The blog is designed to bring together local real estate professionals (agents, mortgage brokers, lawyers, home stagers, etc) so that they can share their knowledge with Kingston residents. Content will primarily relate to local issues but will also include national issues that affect the Kingston real estate market.

Please check out KingstonRealEstateNews.com and let us know what you think.

Canadian Homes Prices Fall for Fourth Straight Month

Existing home prices in the country’s largest markets fell for the fourth straight month in September but the Canadian Real Estate Association said on Wednesday that the market is beginning to stabilize.

The average price of a home sold in September was $315,461, down from $336,321 a year earlier, for a 6.2% year-over-year decline. In June, home prices fell for the first time in almost a decade and the trend seems to be continuing.

After a 0.4% year-over-year decline in June, prices fell 3.6% in July and then 5.1% August.

Death of the Cold Call?

Last Tuesday, when the National Do-Not-Call List was activated, the CRTC reportedly received an average of 93,750 calls per hour and so much web traffic that their site crashed. Today, just over a week later, it is estimated that there are already 2.7 million phone numbers in the registry.

Undoubtedly, this service will be popular with consumers but what impact will it have on Canadian Realtors? For some, cold calling has been an important source of leads.

Does the DNCL mark the death of the cold call?