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

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

Click Here To Scroll Thru My Recent Post List
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

http://www.kansascityhousehunter.com/?p=302

reviewed by Moishe Alexander, CFC CEO

Only modest house price declines despite predictions of double digit depreciation

Consistent with current economic trends, Canadian residential real estate prices declined during the first quarter, according to a quarterly House Price Survey released today by Royal LePage Real Estate Services Ltd. As the market correction unfolds, year-over-year home prices were lower, as was expected. Increased buyer activity at the end of March suggests that spring will bring its typical increase in unit sales activity as buyers target summer moves.

Regional disparities in quarterly housing prices showed markets in Atlantic Canada outperforming other areas of the country as hardy local economies spurred house price growth across the three housing types surveyed. Markets in central Quebec and eastern Ontario held steady with areas of modest growth and limited declines. In the balance of Ontario, and in particular the Greater Toronto Area, prices retreated from the record levels set in the first quarter of 2008, with most trading areas showing mid to low single digit declines. With the exception of Manitoba, western provinces saw significant changes as the rapid run-up in prices experienced earlier in the decade gave way to double-digit declines in most regions. As market corrections in B.C. and Alberta were underway well ahead of the full impact of the current economic crisis, it is suggested that these areas may be first in Canada to stabilize.

“We expected a sharper decline in house prices across Canadian markets during the first quarter,” said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services Ltd. With economic hardship dominating our global consciousness, it was predictable that dwindling consumer confidence would continue to drive prices lower. But markets were relatively resilient during the period. Soper continued, “Canadians in most regions should not expect the prices of their homes to begin appreciating again until the overall economy begins to stabilize, likely in the first half of 2010.”

The report shows that the average price of a two storey home in Canada declined 6.5 per cent to $379,636 compared to the same quarter last year. In Vancouver, the average price declined 12.6 per cent year-over-year to $828,750 while in St. John’s prices climbed 15.6 per cent to $265,000. With consumer confidence bolstered following investments by Vale Inco NL and Hebron, Soper commented: “Using house price change as a gauge, Newfoundland is Canada’s sole remaining seller’s market.”

Moderate growth occurred for detached bungalows in Montreal (up 2 per cent) and Ottawa (up 1.9 per cent), while Toronto saw a decline of 6.3 per cent compared to the same period in 2008. Prices in the prairies and in western cities declined with the average price for a detached bungalow down 8.1 per cent in Saskatoon and 11.2 per cent in Edmonton.

The nation’s condominium market waned with the average price of a standard unit dropping 4 per cent to $232,877 compared to $241,152 in the first quarter of 2008. Calgary saw a 12.8 per cent drop in average price of condominiums, but declines were less severe in Vancouver (down 5.3 per cent) and in Toronto (down 3.1 per cent). “Condominiums are generally the most affordable housing option, especially in urban centres,” Soper said. “With record low lending rates and new government initiatives aimed at encouraging first-time buyers to enter the market, ownership at the entry level is becoming increasingly accessible.”

Noting recent global efforts to address the economic crisis, including the coordinated response from the world’s leading economies coming out of the G20 meeting and stimulus package announcements at home and in the United States, as well as what appears to be the beginning of equity market recovery, Soper commented, “These glimmers of economic hope are coinciding with a time of year that typically brings renewed interest in the housing market. Traditional spring trends – increases in open house attendance, calls to brokers and viewing appointments – tell us that potential buyers are stepping off the sidelines and an increase in purchase activity is likely to follow.”

Royal LePage’s quarterly House Price Survey shows the following annual change of prices for key housing segments in select national markets. Please click on the link below to open the House Price Survey.

Royal LePage Quarterly House Price Survey April 2009.pdf

In Victoria between January – March 2009 the average price of a Detached Bungalow was $453,000. (3.2% change from 2008)

A standard two-storey home during the first quarter of 2009 was $435,000. (-5.4% from 2008 year’s first quarter)

A standard condominium was priced at $260,000. (-11.6% from 2008 first quarter)

Reported by Moishe Alexander, CFC CEO

Mortgage fraud and the victims of fraud in real estate purchase

Mortgage fraud is defined as the material misstatement, misrepresentation or omission that is relied upon by an underwriter or lender for funding, purchasing or insuring a mortgage loan. The misstatement, misrepresentation or omission refers to the lies as also the white lies. In case a lender makes an advancement of mortgage money while telling any small lie regarding the borrower’s income, property value, intended use of property etc. then a mortgage fraud is said to have occurred.

Common victims of fraud are those who have purchased real estate whose values have been over inflated by a series of fraudulent transactions. In this way several consumers have had incurred huge financial losses and their credit ratings have been damaged.

Dealing with real estate related fraud in Alberta

This is a crime and you need be informed and armed beforehand to effectively combat the damaging influence of mortgage fraud. You need to beware when approached for opting for any scheme set to help make quick and easy money in real estate. Caution needs to be observed when your name is being taken down for credit purposes or when you are being asked to create or alter certain documents in a real estate or mortgage transaction. If you are suspecting that you can get involved in a fraudulent transaction then you ought to immediately report such suspicions to the Real Estate Council of Alberta (RECA) for them to take suitable action.

In an effort to reduce mortgage fraud relating to the real estate market of Alberta, Canada the RECA has taken up several initiatives-

- Efforts have been made to bring about a change in the industry by introducing mandatory mortgage fraud awareness course, improved investigative resources and processes, stronger sanctions against licensees involved in mortgage fraud and development of ongoing education processes incorporating mortgage fraud identification knowledge.

- There have been collaboration endeavors with other stakeholders and enactment of legislative changes and information sharing efforts extended.

- There has been made efforts to increase public awareness.
These will hopefully work towards curbing mortgage frauds to a desirable extent and make the investment in real estate in Alberta less risky…

http://www.socialjury.com/632/dealing-with-fraud-in-real-estate-purchase-in-alberta-2/

Review made by Moishe Alexander, CFC CEO

VICTORIA, May 30, 2009 — Speaking to delegates at the Co-operative Housing Federation of Canada‘s (CHFC) Annual General Meeting, Mr. Ed Komarnicki, Parliamentary Secretary to the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada, and Minister responsible for Canada Mortgage and Housing Corporation (CMHC), today highlighted investments under Canada’s Economic Action Plan aimed at the renovation and retrofit of existing social housing.

“Across Canada, social housing helps almost 625,000 households and we know that much of this housing is getting older,” said Mr. Komarnicki. “Our investments will provide money to renovate and energy-retrofit social housing and improve the quality of life for residents of these communities by keeping their homes safe and affordable.”

As part of Canada’s Economic Action Plan, the Government announced $1 billion for social housing renovation and retrofit. Eligible repairs include general improvements, energy-efficiency upgrades or conversions and modifications in support of persons with disabilities. Overall, Canada’s Economic Action Plan provides $7.8 billion to build quality housing, stimulate construction, encourage home ownership and enhance energy efficiency.
CREA President Cal Lindberg on the 2009 Residential Real Estate Market in Canada

“Our government is taking timely and focused action to invest in housing,” added Mr. Komarnicki. “These investments will not only build quality housing but they will stimulate construction, encourage home ownership and enhance energy efficiency.”

During his remarks, Mr. Komarnicki also presented the CMHC Award for Outstanding Contribution to Co-operative Housing. The award, recognizing the achievements of individuals and organizations who have made significant contributions to co-operative housing in Canada, was presented to representatives of the Federal Co-operative Housing Stabilization Fund.

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 and healthy communities and cities across the country.

CHF Canada is the national voice of the Canadian co-operative housing movement. Its members include nearly 900 non-profit housing co-operatives and other organizations across Canada. More than a quarter of a million Canadians live in housing co-ops, in every province and territory.

To find out more about how the Government of Canada and CMHC are working to build stronger homes and communities for all Canadians, call CMHC at 1-800-668-2642 or visit www.cmhc.ca/housingactionplan. To learn more about Canada’s Economic Action Plan, visit www.actionplan.gc.ca.

The main campus of Simon Fraser University (SFU) is nestled in the woodlands of Burnaby Mountain and surrounded by the municipalities of the Greater Vancouver area. This area also boasts Canada’s highest housing costs, which many of the SFU faculty and staff cannot afford.
Those with children face the additional challenge of choosing between child-friendly neighbourhoods and manageable commutes. The SFU Community Trust recognized that these challenges were a barrier to attracting and retaining faculty and staff and saw the potential of using its existing on-campus residential area, UniverCity, to showcase green technologies for sustainable living. The Trust put out a request for proposals to develop a new UniverCity project, selecting Vancity Enterprises (VCE) as the developer. In turn, VCE hired reSource Rethinking Building, which specializes in sustainable strategies, as co-development manager.
Working in partnership, these three organizations used several strategies to make the new development affordable. The Trust provided the 99-year ground lease to VCE at half the market value, provided space for the sales centre, and delayed payment for the land until after construction, saving on interest costs.
VCE reduced its profit and development management fees, performed marketing in-house at reduced cost, and negotiated a reduction in parking spaces, recognizing that many residents would not need cars. Two parking spaces were designated for co-op use, with the Cooperative Auto Network locating cars at Verdant. These savings were passed along to purchasers, making the homes available at 20 per cent below market value; a resale control agreement created by VCE guarantees that future resales will also be at 20 per cent below market, ensuring long-term affordability.
Verdant is also environmentally sustainable; reSource demonstrated that Verdant could attain LEED Silver certification by increasing costs by only 1.5 per cent—and that still greater energy efficiency could be achieved by using geothermal heating. This would be expensive—so reSource and Vancity Capital Corp. developed a financing arrangement so that owners use their monthly energy savings to pay for a second, 25-year mortgage on the geothermal installation— providing long-term energy security and enormous savings after the mortgage is paid. The overall design reduces Verdant’s electricity and natural gas consumption by 66 per cent.
The result, says Moishe Alexander, is great: Verdant opened in April 2007 as a 60-unit strata condominium townhouse community that promotes a broader mix of housing for families; grouped around a central courtyard that also serves as a play area, Verdant is kid-friendly—as are the durable and washable materials featured in the homes themselves. Perhaps most interesting to the development industry, however, is the fact that Verdant’s affordability did not depend on government subsidies. The SFU Community Trust has used Verdant as a showcase to developers, while VCE has made its Resale Control Agreement available free of charge to municipalities and other developers; BC Housing has agreed to use this agreement as a blueprint for similar developments.