“Housing starts improved in both the singles and multiples segments in January,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “These increases are similar to the ones that occurred in December.”

The seasonally adjusted annual rate of urban starts increased by 4.4 per cent to 165,200 units in January. Urban multiple starts increased by 5.7 per cent to 76,300 units while single urban starts increased by 3.3 per cent to 88,900 units.

January’s seasonally adjusted annual rate of urban starts increased by 19.8 per cent in British Columbia, by 7.3 per cent in Quebec, by 2.3 per cent in Atlantic Canada, and by 1.5 per cent in the Ontario. In the Prairie region, the seasonally adjusted annual rate of urban starts decreased by 4.8 per cent.

Rural starts were estimated at a seasonally adjusted annual rate of 21,100 units in January.

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.

Case by Case Basis

We are seeing similar signs in the Vancouver real estate market and many are now saying that the price adjustments may have bottomed out sometime towards the end of 2008 or the first couple of months of 2009. And in fact we may have seen prices of Vancouver real estate bounce back a bit from their lows earlier this year.

New home construction rose for a second straight month in June, in what analysts say is another sign that the worst may be over for the Canadian housing market.
Canada Mortgage and Housing Corp. said Thursday there were 140,700 new homes constructed in June on a seasonally adjusted annualized basis. Construction was up almost 8% from the 130,300 May figure.
“There are some pretty good signs that we are starting to see in the housing market,” said Bob Dugan, chief economist with CMHC. “We’ve seen it for quite a few months on the existing homes side.”
Existing home sales rose 42% from January to May across the country and the early indications are that June was strongest month this year. Sales in Vancouver were up 76% last month compared with a year earlier and Calgary and Toronto both recorded 27% increases during the same period.
Existing home inventories have begun to shrink across the country, convincing builders to ramp up construction. CMHC said urban single family homes — considered the best barometer of the new home market — climbed 7.3% in May from a month earlier.
“It’s well into seller’s market territory again with the May and April numbers,” said Mr. Dugan.
The optimism about the Canadian market comes despite the fact new construction at 140,000 units is way off the 200,000-plus figure the market in Canada has seen for the past seven years.
“I can only speculate, but maybe a lot of people are relieved we are not seeing the decreases we have seen in the U.S.,” said Mr. Dugan. “Peak-to-trough, the decline in the U.S. was something like 80%. In Canada, that would mean we’d have to have 55,000 starts. Some people may have thought that’s where the Canadian market was going.”
The consensus among economist is construction won’t return to pre-recession levels but will gradually improve in the coming months.
“This month’s increase is an important confirmation that the Canadian housing sector is past the worst and in recovery mode,” said Marco Lettieri, an economist with National Bank. “The recovery seems to be broad based with gains observed in both multiple [which includes condominium construction] and single units.”
Robert Kavcic, an economist with Bank of Montreal, said there could be some room for modest growth in starts in the coming months.
“Higher affordability and improved consumer confidence brought buyers off the sidelines this spring,” said Mr. Kavcic.
A report this week from RBC Economics said declining prices and lower interest rates led to one of the biggest quarterly improvements in affordability in history. The bank said monthly payments on a typical detached bungalow in Canada had decreased by almost 17% from a year earlier.
Royal LePage Real Estate Services was also forced this week to upgrade its forecast for 2009 because of the improved market conditions. It now expects 430,000 sales this year, an improvement from its previous call of 416,000, but still down 1% from a year ago.
“I think 2009 will go down as a moderate correction as opposed to the deep and sustained recession that we had first feared,” said Phil Soper, chief executive of the real estate company.
Royal LePage expects prices this year will still fall but not by as much as previously feared. It expects the average sale price in 2009 to be $297,000, a 2% drop from last year. It had previously forecast a 3.5% decline.
Mr. Soper said a decline is still tough to swallow after years of compound growth of close to 10% in the housing market but it’s proving to be a far cry from what has happened in the United States.
“We are long way from the 35% decline that a lot of regions in the United States are experiencing. It’s a very different kind of correction,” said Mr. Soper

http://bestmortgagesvancouver.wordpress.com/2009/07/16/worst-may-be-over-for-the-housing-market/

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

There has been fervent discussion about the impact of US recession on Mexico Real Estate and its future prospects. When talking about Mexican Property market, it may seem that it is closely related to the US real estate. Some may very well paint a gloomy picture for Mexico Real Estate market. But an in depth study of Mexico Real Estate will reveal a bright future for Mexican Real Estate in the coming year.

The real estate in Mexico has witnessed steady appreciation in the last 5 years. Both, homes and condos in Mexico, new and resale have contributed to this growth. The real estate market in Mexico is usually popular with American citizens who look for a second home or vacation home in Mexico. The reasons for this popularity have been its close proximity to USA, low cost of living, better value for money and a warm sunny climate. Recent years have seen thousands of American expatriates buying retirement homes in Mexico. Moreover, infrastructure in Mexico has improved to international standards. This has made Mexico a much sought after destination.

You may very well ask why Mexican Real Estate industry won’t suffer as a consequence of the recent fall of US economy.

Destination like Cancun, Playa del Carmen, Puerto Vallarta , Baja California region are very popular with real estate investors in Mexico. These areas are continually seeing new and grand real estate projects conceived and completed to meet the demands of the buyers eager to buy real estate in Mexico. With the introduction of Mortgage financing for foreign real estate investors in Mexico, the increase of foreign investment has strengthened the growth of real estate market in Mexico. Since, the lending process and criterion for foreign real estate investors has been simplified, it has served in increasing enthusiasm for Mexico real estate.

Mexico real estate market is much more stable than US real estate market. The residential mortgage backed securities, popular in the US property market, are not common in Mexico, so have a much less effect of the sub prime crisis afflicting US economy.

Another factor is that the buying market who are looking for the second vacation home is not really experiencing too much of the current recessionary effects in America.

One very interesting development seen in Mexican real estate market is the increase in real estate investors from Canada. Canada has experienced a very strong dollar in recent times. Strong economy and increased property markets, especially in the main areas of Toronto and Vancouver , have led to a large number of Canadian home owners able to spend money on a second or Vacation Homes in Mexico.

Mexican real estate market seems to be a promising and steady destination for investors throughout the coming years. Recessionary influences of the US have not shown any medium to long term negative impact so far on Mexico Property Market. Foreign investors from Canada and Europe are flocking to Mexico compensating for any dwindling of investment from USA. So go ahead and buy your dream vacation home in Mexico and secure your investment for the future.

Author: Insight Advisors

http://pcmexico.org/right-time-to-invest-in-mexico-real-estate/

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

Did you ever consider a retirement home as a business opportunity? Did you know that it is one of the fastest growing sectors in the market. Obviously, this is due to the aging population. And, the demand for space in retirement homes will continue to grow.

You should be aware that retirement homes unlike Homes for the Aged, Nursing Homes and Private Hospitals are somewhat unregulated. Space, accommodation and the services provided are all subject to the market forces of supply and demand. A good and successful facility will house a good mix of people. It will have a reasonable division between private areas and common areas. There should be plenty of places to sit and relax, and simply catch up on one’s reading. If you don’t have the time to read in your retirement, then just when are you going to read?

There is also a need for physical activities. Today’s aging population is far more active than were previous generations. A place for a gym, yoga class or dance class would work well. Playing cards and pottery classes are becoming less popular.

If you are considering starting a retirement home or acquiring an existing one, you should think about the maturation of the home population over time. A retirement home which opens up to new residents, will soon fill up with the young elderly. These are people in their seventies, often with an average age around 75. However, as time goes on, the retirement home will find that its average age increases with its residents. In 10 years, the home will have a population of 85 year olds, and in a further decade the average age will be 95.

Now, of course, there’s attrition. Some residents will move, some will become ill and require a nursing home and others will pass away. But, the important matter to note is that the average age is increasing. As new residents move in, they are likely to be attracted to a home with an average age close to their own. So, if your average age has increased to 85, then you are likely to attract 85 year olds. The 75 year olds will go elsewhere. That issue becomes the most difficult matter to manage when you are running a retirement home. So, what’s the solution?

Actually, the solution is obvious. You expand! You continue to build onto your existing facility. You need to attract the young elderly and in order to do so, you will have to offer relatively new facilities catering to the young elderly.

So, when you are looking for a facility you will need to ensure that there’s lots of room for expansion. You need to have a 20 year strategic building plan.

To simply acquire an existing facility and hope that the business will maintain itself would be rather foolhardy. Your business success is in the “mix’. The changes in demand for services will never be greater than the 75 to 95 age range. Residents will become more and more dependent and require more and more services to assist them in their daily living routines. Each of these additional services becomes an additional profit centre.

So, if you’re thinking about buying a retirement home, be sure you know the average age of the residents and be sure that you have room to expand.

http://ontariorealestatesource.blogspot.com/

reviewed by Moishe Alexander,  Canadian funding corp CEO

The common law Doctrine of Privity as it relates to contracts provides that a contract cannot confer rights or impose obligations arising under it on any person or agent except the parties to it. In essence, the Doctrine of Privity of Contracts simply states, that only the parties to a contract have the right to sue or be sued under it. This means, generally speaking, that third parties who get a benefit under a contract do not have the right to go against the parties to the contract beyond the entitlement to such benefit. An example of this occurs when a manufacturer sells a product to a distributor and the distributor sells the product to a retailer. The retailer then sells the product to a consumer. There is no privity of contract between the manufacturer and the consumer.

However, one exception to this doctrine is that for contracts, which create an interest in land. Contracts involving real property run with the land, so that a new property owner can sue or be sued on a contract, even though he was not a party to it. A second exception to the Doctrine of Privity is an assignment

In an assignment, a person (called the assignor) can assign to a third party (the assignee) his entitlement to benefits arising out of a contract. If he does so, the third party has the right to sue to enforce those benefits. Obviously, a person cannot assign liabilities under a contract.

There are two types of assignments: statutory and equitable. A statutory assignment has three essentials:

[ ] The assignment is in writing.

[ ] The assignment is absolute, that is for the whole amount, and unconditional.

[ ] Notice of the assignment has been given in writing to the original promissor.

If any of the foregoing essentials is missing, the assignment might still be equitable. Statutory and equitable assignments are enforced differently by the Courts. In an equitable assignment all three parties must be named as parties in a court action to recover the amount outstanding. In a statutory assignment, on the other hand, only the original promissor and the assignee are named as parties to the action. The assignor is not a party to it.

An assignment does not alter the rights of the parties to the original contract. The assignee has no better legal position than the assignor had. More specifically, he receives the assignment subject to any defenses, which could have been raised between the original parties. If the assignor has properly assigned his rights, he is free from any further liabilities. It is now up to the assignee to collect the benefits of the original contract. Should the assignee fail, he cannot sue the assignor for it.

Finally, the original promissor does not have to make payments to the assignee until he receives proper notice. Once this notice is received, the original promissor must pay to the assignee and not the assignor even though he has not consented to the assignment.

Although no one can assign his liabilities under a contract, as stated above, a promissor can have his obligations performed by someone else. For instance, a promissor can require his employee or sub-contractor to perform his obligations under a building construction contract. Where a promissor has someone else perform his obligations under a contract, it is called vicarious performance. Vicarious performance is not an assignment, in that it does not result in the substitution of one the original contracting parties for another.

In the aforesaid example of a building construction agreement, the original contractor (promissor) is still liable to the other contracting party. In addition, the sub-contractor who performs vicariously cannot be sued by the other contracting party for non-performance. Only the building contractor can sue the sub-contractor, and this is so because of the privy of contract intercurrent between the two of them.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

http://houseenergy.blogspot.com/2009/07/assignees-nominees-and-other-extra.html

reviewed by Moishe Alexander, canadian funding corp CEO

More than half a million Canadians have fallen behind on their various credit payments, fuelling a 19 per cent rise in the average national delinquency rate in the one-year period ending May 31, 2009, says a new report from Equifax Canada.

The credit bureau called the double-digit jump “alarming,” noting the average delinquency rate for Canada hit 1.52 per cent at the end of May.

Much of the trouble stemmed from missed payments on credit card bills and for sales finance purchases of items such as furniture and electronics.

Equifax defines delinquent bills as those that are at least 90 days overdue.

Nadim Abdo, an Equifax vice-president, stressed the “sharpest increase” in delinquencies resulted from credit card and sales finance purchases, which have risen by 38 per cent and 58 per cent, respectively, since May 2008.

Rising delinquencies in those areas are troubling because consumers tend to miss payments on those unsecured credit products before they fail to pay back collateral-backed loans such as mortgages, bank loans and lines of credit, Abdo said.

US Credit Card Delinquency Rate Jumps 11 Percent

Inquiring minds might be asking for a comparison between Canada and the US. For the answer, please consider 1Q credit card delinquency rate jumps 11 percent.

Credit card holders who in ordinary years might have used their tax refunds to pay down their balances apparently spent the money elsewhere as the recession deepened in the first quarter.

That’s one of the conclusions that may be drawn from data showing the delinquency rate for bank-issued credit cards rose 11 percent in the first three months of the year, according to credit reporting agency TransUnion.

The delinquency rate jumped to 1.32 percent this year, from 1.19 percent in the first three months of 2008, TransUnion said. The statistic measures the percentage of card holders who are three months or more past due on their payments for cards bearing MasterCard and Visa logos, along with American Express and Discover cards.

The average total debt on bank cards also rose, jumping to $5,776 from $5,548 last year.

TransUnion measures credit card delinquencies at 90 days, but tracks mortgage delinquencies at 60 days. Becker said that is because card payments are typically much smaller than mortgage payments, and it’s easier to catch up on past due cards. For people in financial distress, it’s much harder to produce two mortgage payments once they fall behind, he explained.

Not surprisingly, bank card delinquency rates remained the highest in the states hardest hit by the mortgage meltdown: Nevada, Florida, Arizona and California.

North and South Dakota and Alaska, the states with the lowest rate of mortgage delinquencies, are also the states with the lowest credit card delinquencies, TransUnion data showed.

TransUnion, which samples 27 million consumer records to produce its data, expects the rate of credit card delinquencies to rise for the rest of the year, ultimately reaching about 1.7 percent.

Note that the US rate was a comparison of March 2009 to March 2008 while the rate for Canada was a comparison of May 2009 to May 2008. Thus Canada and the US are following a similar path.

Dynamic Maps

The Federal Reserve Bank of New York has Dynamic Maps of Bank Card and Mortgage Delinquencies in the United States that some may wish to consider.

In regards to mortgages, Canada has some “catching down” to do, and it will. All the bubble areas such as Vancouver, Calgary, Toronto, etc are going to get hit hard.

Mike “Mish” Shedlock

http://globaleconomicanalysis.blogspot.com

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Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

http://offshoreinn.com/investing/500000-canadians-90-days-behind-on-credit-payments-delinquency-rate-hits-152-us-delinquency-rate-is-132/

reviewed by Moishe Alexander, CFC CEO

Insurance Coverages You Need:

If you haven’t updated your insurance coverage in some time, your Hamill, North Dakota Mobile Home Parts may be vastly underinsured. For example, if your home is worth $150,000 on the real estate market, how Sterling, Nebraska Log Home Floor Plans insurance should you carry? $150,000? $75,000? $300,000? While your mortgage broker may require a specific amount of insurance (usually the value of the mortgage), the real answer depends on how much it would cost to rebuild the home. If it will cost $200,000 to rebuild your home, then you will need at least that much coverage; otherwise, you’ll come up short.

In general, you will need enough insurance to cover: Powder River, Wyoming Skyline Double Wide your home, replacing your personal property, paying for temporary living expenses during repairs, and covering your liability to others.

When it comes to covering your rebuilding your home, multiply the square footage of your home by local “per square foot” construction costs. Contact the local building association, a realtor, or your insurance agent to obtain the local construction cost figure.

Insuring your possessions is trickier than simply saying, “I’ll take $50,000 in coverage.” First, go room through room and document your belongings. Include dollar figures of how much it would cost to replace each item. Make sure that your policy uses “replacement cost” rather than “actual cash value.” In addition, be aware of the limitations of your policy. For example, fine jewelry, fur, silverware, artwork, coin collections, electronics, cash, and guns (as well as other items) often have maximum limits. If you have valuables exceeding these limits, you will need to obtain an endorsement or rider.

Buy enough liability to cover your assets. For example, if you have $1 million in savings and other assets, yet only have $300,000 in liability insurance and are involved in a liability lawsuit, the plaintiff may pursue your additional assets above and beyond your liability limits.

If you live in an area where the risk of floods or earthquakes is of concern, you may want to consider optional flood or earthquake insurance as these perils are excluded from typical insurance policies. In addition, if you have a swimming pool or a dog, you might need additional coverage addressing these increased risks.

Insurance Coverages You Don’t Need:

Reviewing your policy each year helps ensure that you aren’t paying for coverages you do not need. For example, if you had purchased a rider adding coverage because you owned a pit bull and the dog has since died, you can drop coverage. Likewise, if you’ve sold your jewelry or art collection, why continue to insure it with an expensive rider? Look at your coverages, endorsements, riders, and limits with an eye for whether that coverage is still necessary. In addition, look at the dollar figures. A few years ago, it may have made sense to pay an extra $100 per year to add a rider protecting your computer from household mishaps, but now that you can buy a comparable computer for a few hundred dollars as opposed to thousands, the coverage may no longer be worth the price.

Finally, while examining your insurance policy, schedule a consultation with your insurance company or agent and ask how you can reduce your costs while maintaining adequate coverage. For example, by installing deadbolt locks or a security system, you may reap a large discount.

By: Mr. Mark Decherd

http://modular-housing28418.blogspot.com/2009/07/insurance-coverage-what-you-need-and.html

brought by Moishe Alexander, CFC CEO

Among other things, it compared Canadian and American mortgages and listed several key differences.  Here are the big ones:

• US mortgages typically don’t have pre-payment penalties.  Canadian mortgages usually do (except for “opens,” which are more expensive).
• Canadian mortgages are portable. Portability is rare in the US.
• US mortgages often have higher origination costs (thanks to “points” and fees) than Canadian mortgages.  According to the study, Americans pay $3000-$5000 on a typical purchase, while Canadians pay about $1800.
• Rate holds are usually free in Canada. American lenders commonly charge for them.
• Mortgage insurance in Canada covers the entire loan amount. In the US, it usually only covers losses above a LTV ceiling (above 80% for example).
• In Canada borrowers must pay the entire insurance premium up front. In the US, borrowers pay it monthly and can cancel it when LTV falls below the required threshold (e.g.,  80%).
• In foreclosure, Canadian lenders have recourse in a borrower’s non-home assets. In the US, that’s usually out of the question due to legalities or costs.
• Most US mortgages require payments to be made at the beginning of every month. In Canada, we have weekly, bi-weekly, semi-monthly, and monthly payment options.

Some other notable statistics and conclusions:

• Deposit-taking institutions held 62% of Canadian mortgage debt at the start of 2009.
• Just 29% of Canadian mortgages are securitized, versus 60% in the US.
• 45% of Canadian chartered bank mortgages are insured.
• Home ownership in the US and Canada are both about 68%, despite US homeowners receiving a mortgage interest tax deduction.
• Canada has fewer options than the US when it comes to mortgage terms over 5 years. The author says that’s due to a five-year maturity cap on government-guaranteed deposit insurance, and the Interest Act’s prepayment penalty limit.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/06/boring-but-effective.html

reviewed by Moishe Alexander, CFC CEO

Bev Shipley, Member of Parliament for Lambton – Kent – Middlesex, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada, and Minister Responsible for Canada Mortgage and Housing Corporation; Maria Van Bommel, Member of Provincial Parliament for Lambton – Kent – Middlesex, on behalf of the Honourable Jim Watson, Minister of Municipal Affairs and Housing; and Councillor Brian Ritchie, Municipality of Middlesex Centre, on behalf of Mayor Al Edmondson, attended the ceremony.

“Today’s event marks an important step forward for the people of Komoka and demonstrates what we can achieve when we work together,” said MP Shipley.” When it comes to building safe and strong communities, it takes the efforts of many to achieve success. It takes partnerships at all levels of government to get real results.”

“Through the construction of safe affordable housing, we are helping vulnerable people establish and maintain the stability that so many of us simply take for granted,” said Van Bommel. “This apartment complex will make a positive difference in the lives of the seniors who will call it home.”

Today’s announcement recognized the official opening of Komoka Seniors’ Apartment Complex, a 20-unit complex sponsored by the Lobo Township Non-Profit Apartment Corporation. The $2.64 million project received $1.4 million under the Canada – Ontario Affordable Housing Program.

The federal and provincial allocations to the project were complemented by over $45,000 in municipal financial incentives.

“I would like to thank the Board of Directors and volunteers of the Lobo Township Non-Profit Apartment Corporation who saw a need in their community and, in partnership with three levels of government, have built housing that is second to none for seniors that are on fixed incomes,” said Edmondson. “This project speaks to the caring and compassion within our communities and I look forward to more such initiatives across Middlesex Centre.”

The Canada – Ontario Affordable Housing Program comprises a commitment of $301 million from each of the two senior levels of government. In total, the federal, provincial and municipal governments will invest at least $734 million in the program, which will provide affordable housing for up to 20,000 households in Ontario.

Last fall, the Government of Canada committed more than $1.9 billion over the next five years to improve and build new affordable housing and to help the homeless. Canada’s Economic Action Plan builds on this with an additional one-time investment of more than $2 billion over two years in new and existing social housing and lending of up to another $2 billion to municipalities for housing-related infrastructure.